At the risk of drifting into broken record territory, it's very difficult to generate real long-term economic profits from distribution and dealership businesses. By and large, these are business with razor-thin margins, low returns on assets and capital, and significant cyclicality. Maybe Titan Machinery (Nasdaq:TITN) will be the exception, and maybe the company's aggressive dealership roll-up strategy will lead to strong synergies, margin leverage, and cash flow generation. This is a risky play, though, and investors who really want to play trends like agriculture or a construction recovery would likely be better off with the original equipment manufacturers.
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http://www.investopedia.com/stock-analysis/060613/even-steady-guidance-titan-machinery-has-lot-prove-titn-cnh-de-cat.aspx
Investopedia: Even With Steady Guidance, Titan Machinery Has A Lot To Prove
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