Sell Ritchie Bros. Auctioneers (RBA)
Before the stock market opened yesterday morning (March 4) Ritchie Bros. Auctioneers (RBA) reported earnings per share of 20 cents and revenue of $97.1 million. The earnings number matched Wall Street projections but revenue 1% above expectations of $95.8 million. Revenue was up 19% for the quarter from the fourth quarter of 2008.
The number to watch, though, if you want to understand what’s going on at Ritchie Bros. is gross auction proceeds. That’s the amount of money that Ritchie Bros. collects for buyers in selling their items. Ritchie Bros. earns a commission on gross auction proceeds.
Gross auction proceeds climbed 1% in the quarter from the fourth quarter of 2008 but fell 2% for all of 2009 from the 2008 level.
The problem was that while the number of items Ritchie sold grew by 12% in 2008, the average price of the equipment the company sold fell. Read more
Buy Ritchie Bros. Auctions (RBA)
The perfect stock for the current economic uncertainties probably doesn’t exist. These shares would have to shine if the economy recovers in 2010 as strongly as optimists now think and do well if the recovery is only tepid and even climb if the economy slid back toward recession in 2010.
You can certainly understand why I’d want to find such as stock, right?
Probably doesn’t exist, as I said. But that doesn’t stop me from looking. And I’ve found a stock that while not perfect gets me two-thirds of the way to an all-economic-weather buy.
I’d adding shares of Ritchie Bros. Auctioneers (RBA) to Jubak’s Picks with this post. Read more
