HEES - H&E Equipment Services Inc. (NASDAQ Stock)

[Theboundbook]

This company is one of the largest distributorships of Catepillar products in the world. I just found out that the CEO is my old neighbor from childhood where my parents reside still to this day.

Gary Bagley is his name and I did some studying tonight about him and this company. This company is ready to EXPLODE! First 3 years in business they were at one pt down 40.8 million! Now 2 years later they are debt free and are expecting 1 billion in revenues and huge projected projects for 2008. Just look at how they are expanding and growing and the exponential profits possible.

Though Gary and I only have met when I was a child and he owned a company called State Stone, I am really impressed on his business savy and wise decisions in what he is doing for this company along with the board of directors from reading information from their website. We have NEVER spoken about business and honestly was shocked to find out I know someone worth so much and is so humble..... (Though I did have my eye on his two daughters growing up. hehe.)

My broker and I (obv a good friend) agree that this is a sleeping local (Salt Lake) giant awaiting a wakeup.

I believe that they went public Jan 30th of this year and have declined down to a low of 15.00 since then. They have hit a high of 30.59 and now today closed at 18.83 up .92 or 5.14% on the day.

I see this going back to 30 and beyond as word gets out about the profit and business stability of this company. And I think it helps that Catepillar (up 25% on year themselves closing at 73.82 today) is a solid and respected American product that they work with and represent. When I cash in big with my MWY profits at the end of the month here I believe this is one I will be putting and holding for a yr+ as my steady reliable stock.

Ok, with all of that said, (this is IMO only), I would like to see what you guys think about this and PLEASE respond about anything on my poss. purchase of this company.

[Theboundbook]

At 19.11 and moving steadily up each week. Should crack the 20.00 mark this month.

[BadThad]

From thestreet.com:

RECOMMENDATION
We rate H&E EQUIPMENT SERVICES INC (HEES) a SELL. This is driven by several weaknesses, which we
believe should have a greater impact than any strengths, and could make it more difficult for investors to
achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen
in multiple areas, such as its generally weak debt management, weak operating cash flow and generally
disappointing historical performance in the stock itself.
HIGHLIGHTS
Currently the debt-to-equity ratio of 1.75 is quite high overall and when compared to the industry average,
suggesting that the current management of debt levels should be re-evaluated.
Net operating cash flow has decreased to $26.84 million or 21.88% when compared to the same quarter last
year. In conjunction, when comparing current results to the industry average, H&E EQUIPMENT SERVICES
INC has marginally lower results.
HEES's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the
net result is that it is down by 25.10%, which is also worse that the performance of the S&P 500 Index.
Investors have so far failed to pay much attention to the earnings improvements the company has managed
to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price
over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may
help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
40.90% is the gross profit margin for H&E EQUIPMENT SERVICES INC which we consider to be strong.
Regardless of HEES's high profit margin, it has managed to decrease from the same period last year. Despite
the mixed results of the gross profit margin, the net profit margin of 7.50% trails the industry average.
The company's current return on equity greatly increased when compared to its ROE from the same quarter
one year prior. This is a signal of significant strength within the corporation. Compared to other companies in
the Trading Companies & Distributors industry and the overall market, H&E EQUIPMENT SERVICES INC's
return on equity exceeds that of both the industry average and the S&P 500.

I need to some more DD, I'm not sure I agree with thestreet.com after what you said. That.....and Jaywalk shows it as a BUY. Chart looks like a good bottom play too.

[Theboundbook]

That is what I was thinking. This is a bottom and will bounce, if it hasnt already. And being a Catepillar (largest I believe in US) dealer and with the growth of construction everywhere (not just housing; streets, bridges, etc), I think they can put this puppy into to high profits for themselves and the shareholders. Would like to see your charts on this after your DD.