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ALTG - Alta Equipment


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ALTG is an equipment sales and rental business based mostly in the midwest, northeast and Florida. The SPAC conversion was in February and the stock has dropped from $10 to $4.5. Including recent acquisitions, LTM numbers are $94M EBITDA on $822M revenues. The current EV is $380M, $135M market cap (30M shares @ 4.5) and $245M debt. Currently there is a $10M buyback. The acquisitions were made at ~50% revenues, to give you an idea of what private market valuation is.  United Rentals, which was the original Bradley Jacobs equipment roll-up, now trades at 2x sales so there is quite a bit of gap between the valuation of acquisitions and the potential market value.


The equipment  business will obviously be hard hit by the recession and in 2008 revenues declined 35%. The business is well-funded (just went public) and during the recession it should "defleet" as equipment ages and isn't replaced. That will provide the cash to buy back shares and pay down debt and make acquisitions.


The CEO is Steve Greenawalt, 46 who took over his fathers equipment rental business in Michigan. Previously he worked at Bear Stearns and UBS and he owns about 25% of the shares.

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