A Pick Under $10
Wabash National Corporation (NYSE:WNC)
designs and manufactures transportation related products such as
truck trailers. The energy sector is a place for long term usage of
their products and the increase in domestic drilling puts them in a
perfect position to take advantage of the oil industries needs.
They have an agreement to produce 2500
frac tank units over the next five years resulting in $70 million
dollars in sales. They are well positioned in the market to take
advantage of the need for not only frac tanks but also oil field low
beds, mixers, flowback tanks, production tanks and more. Besides the
oil industries need, the recovering trucking industry with their aging
fleet equipment will also fuel demand for Wabash's other products.
My main concern would be if sales fall
and the cash flow dries up. They are counting on their free cash flow
to pay down debt early that comes due in 2018 and 2019.
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