Topic: How To Invest

Hi Pat: What do you think about the long-term potential of small cap company Rocky Mountain Dealerships?

Article Excerpt

Rocky Mountain Dealerships, $12.23, symbol RME on Toronto (Shares outstanding: 19.3 million; Market cap: $235.7 million; www.rockymtn.com), is one of Western Canada’s largest agriculture and construction equipment dealers, with a network of 38 locations across the Prairie provinces. The company’s network includes 25 branches in Alberta, 9 in Manitoba and four in Saskatchewan, all operating under the Rocky Mountain Equipment name. Rocky Mountain is Canada’s largest dealer of equipment made by CNH Industrial N.V. It is also a major seller of gear from a number of other manufacturers, including Bourgault, Seedhawk, Terex, Dynapac, Leeboy and Metso. The company sells new and used equipment and parts. It also offers a range of services, including equipment repair, financing, insurance and shipping, as well as GPS signal subscriptions. In the three months ended September 30, 2013, Rocky Mountain’s revenue rose 10.1%, to $272.6 million from $247.5 million a year earlier. However, earnings per share fell 31.1%, to $0.31 from $0.45. The company focused on reducing its…