Rocky Mountain Dealerships
Last Updated On: January 1, 2019
Share Price On This Date: $8.82
Operates a chain of heavy equipment dealerships in western Canada.
Rocky Mountain owns and operates a chain of farm equipment dealerships in western Canada. This industry has apparently been through a dry spell over the last few years. Sales and earnings slumped at RME and there was some excess inventory that they had to work through. But things are back on track now. Inventory levels are down and profits are picking up. Hopefully, this momentum will continue. Historically this has been a strong performer through all the phases of the business cycle as their results are affected more by weather patterns than by economic activity. People can put off buying the latest iGadget but they are always going to want food on their plates come suppertime. Right now, that sort of more defensive play is looking attractive. And at a trailing p:e of 9 and a p:b of 1, you don’t seem to be paying a significant premium for this sort of stability.