A. MANAGEMENTS EFFECTIVENESS - BELOW AVERAGE
B. PRODUCTS & SERVICES - GOOD LINE-UP
C. SALES - EXCELLENT
D. (OPERATIONS) CASH FLOW - GOOD
E. PROFITABILITY -  EXCELLENT
F. PRICE-EARNINGS RATIO (P/E) -  HIGHER THAN INDUSTRY'S AVERAGE
G. FINANCIAL HEALTH - GOOD
H. MARKET CAPITALIZATION - GOOD
I. TRADED VOLUME - GOOD
J. PRICE GROWTH - EXCELLENT

B. PRODUCTS & SERVICES - EXCELLENT LINE-UP

Products and services are the elements that enables a company to have a presence in its target market and generate sales. The set of products and services that a company has and how successful those products and services performs in the target market are very important factors in considering a company's stock for investment.

JLG's line-up of Products & Services.  The company manufactures access equipment (aerial work platforms and telehandlers) and highway-speed telescopic hydraulic excavators (excavators).  JLG operates through three business segments: Machinery, Equipment Services and Access Financial Solutions. The company's aerial work platform and telehandler products are used in construction, industrial, institutional and general maintenance applications to position workers and materials at heights. (Ref.:Reuters).

The Company's Gradall brand excavators are typically used by contractors and government agencies for ditching, sloping, finish grading, and general maintenance and infrastructure projects. The Company's excavators are distinguished by their telescoping, rotating booms and low overhead clearance requirements. JLG manufactures and markets a variety of track-mounted and wheel-mounted excavators, including specialized models used in mining, steel production and hazardous waste removal applications, and is a supplier of highway-speed, wheel-mounted excavators in North America. (Ref.:Reuters)

JLG's Equipment Services segment provides after-sales service and support for its installed base of equipment, including parts sales and equipment rentals, and sells used, remanufactured and reconditioned equipment. (Ref.:Reuters)

JLG's Access Financial Solutions segment arranges equipment financing and leasing solutions for its customers, primarily through private-label arrangements with third-party financial institutions, and provides credit support in connection with these financing and leasing arrangements. Financing arrangements that the Company offers or arranges through this segment include installment sale contracts, capital leases, operating leases and rental purchase guarantees. Terms of these arrangements vary depending on the type of transaction, but typically range between 36 and 72 months, and generally require the customer to be responsible for insurance, taxes and maintenance of the equipment, and to bear the risk of damage to or loss of the equipment.(Ref.:Reuters)

ACE'S  gives a preferential rating to a company who  have more than one products and services  that have present and continued  utility in a broad and dynamic  market. An estimation of the latter products' utility, distinctive qualities and competitiveness would be subjective assessments. However, there is one objective data that indicates how well the subjective elements of JLG's products and services are assessed and used by its target market - the company's sales.

ACE'S rating of JLG's line-up of Products & Services:  EXCELLENT


C. SALES - EXCELLENT

Sales is an important indicator on how a company's products and services performs in its target market. Generally, a high sales figure is preferred than a lower figure. Also, a steady and appreciable growth in a company's total sales from one year to the next is a key indicator on how a company is able (or unable) to sustain and improve the utility of its products and services in the marketplace.

JLG'S annual sales was $760M in 07/2003, $1,194M in 07/2004 and $1,735M in 07/2005. (Ref.: MSN Money\Financials).  JLG'S 1-year annual Sales growth rate was 45.30% (for Sales of $1,735M) while the  Industry's corresponding rate was 19.20& (for Sales of $4,647M).  (Ref.: MSN Money\Research).

ACE'S gives a preferential rating to a company that have demonstrated the ability to sustain a high and progressively increasing level of total sales  from year-to-year.  ACE'S rating of JLG'S Sales Growth Rate: EXCELLENT.
 

D. (OPERATIONS) CASH FLOW - GOOD

Cash flow is crucial to the operation and survival of companies. A company having ample ready cash ensures that creditors, employees, and others can be paid on time. Cash flow could be considered as a better measure of a business's profitability than earnings, because a company can show positive net earnings and have insufficient cash flow (that is, the company is not able to pay its debts). Cash Flow thus can be used as an indicator of a company's financial strength.

JLG's cash flow during the past 3 years: -$95.2M in 07/2003; $11.2M in 07/2004; and $142.4M in 07/2005. (Ref.: MSN Money\Financials).

ACE'S gives a preferential rating to a company that have demonstrated the ability to sustain a positive and appreciable cash flow from year-to-year.  ACE'S rating of JLG'S Cash Flow: GOOD.


E. PROFITABILITY - EXCELLENT

Making a profit is the ultimate goal of every company. A useful gauge of a company's profitability is its net income (also referred to as "earnings").  Related to a company's outstanding shares of common stocks, the company's total earnings is transformed to "earnings per share" (or "EPS" for short). EPS is a very popular indicator of a company's profitability and a powerful variable that influences the price of a company's stock.

JLG's annual Net Income, for the past 12 months, was $2.9M (vs. the Industry's $372M). For the past 3 years, JLG's  annual Net Income are: $14.2M in 07/2003; $26.6M in 07/2004; and $57.2M in 07/2005.  In terms of growth, JLG'S Net Income have grown 114% during the past 12 months (vs. the Industry's 37% growth rate). (Refs. MSN Money\Financials\Statements; MSN Money\Wizard)

F. PRICE-EARNINGS RATIO (P/E) - HIGHER THAN INDUSTRY'S AVERAGE

A stock's Price-Earnings ratio tells us roughly how much investors are willing to pay per dollar of earnings. Price-Earnings is a ratio of a company's current share price compared to its per-share earnings. The P/E ratio is a much better indicator of the value of a stock than the market price alone.

In general, a high P/E means high projected earnings in the future. As such, the P/E ratio could be interpreted as the reflection of the market's optimism concerning a firm's growth prospects. To determine whether a particular P/E is high or low, take into account a company's growth rates; and the P/Es of other companies in the same industry. Historically, the average P/E ratio in the market has been around 15-25.

JLG has a P/E ratio of 37.47 (ttm) which is 77% higher than the Industry's P/E of 21.08 (ttm) (Ref.: Yahoo! Finance\Competitors)

H. MARKET CAPITALIZATION - GOOD

Market Capitalization (or market cap for short) is a measure of a company's size. The market cap provides a broad gauge of the growth-versus-risk potential of a company. Historically, large caps have experienced slower growth with lower risk; whereas small caps have experienced higher growth potential, but with higher risk.

The market cap of a company is calculated by multiplying the number of its outstanding shares by the shares' current market price. There are presently six classes of Market Cap: Mega Cap, Big/Large Cap, Mid Cap, Small Cap, Micro Cap and Nano Cap.

JLG is a small cap company with a market capitalization of $2.32BM with outstanding shares of 51.66M. .(Ref.: Yahoo! Finance\Statistics)

ACE'S gives a preferential rating to small and mid cap companies.  ACE'S rating of JLG'S  Market Cap: GOOD.


I. TRADED VOLUME - GOOD

A stock's price goes up or down based on the laws of supply and demand. Simply stated, when a stock's price goes up, there must be significant buying demand for the stock. Volume is the actual number of shares traded daily. Traded volume could be used as a gauge of the demand for a stock.

JLG has an 3-month Average Daily Volume of 602,726 shares; and a 10-day Average Daily Volume of 1,225,99 shares.  (Refs.: Yahoo! Finance\Statistics)

ACE'S gives a preferential rating to a company that sustains a lively trade volume from week-to-week and month-to-month.  ACE'S rating of JLG'S  Traded Volume: GOOD.

J. PRICE GROWTH - EXCELLENT

Price growth  is the 12-month increase in the price of a stock (displayed as a percentage). As of 11/22/05, JLG had a 3-month growth of 47.9%, a 6-month growth of 82.1%, and  a 12-month Price Growth of 154.5%. In comparison, JLG's Industry Group's growth rates were 8.4% (3-months); 18.3% (6-months); and 15.9% (12-months). (Refs.: MSN Money\Research).