>Update on Alamo Group

September 7, 2010

>Recommended late last year by Texas presenter the company is tied to farm income with mature products in mature markets. A reminder that they sell specialty mowers and products to farmers and governments for road and field maintenance. Their concept is to tuck in multiple brands so that when giovernment asks for 2-3 bids they are multiple bidders with multiple brands in niche markets. Their other focus is expansion internationally adding brands and products to offer all products to all markets. Their replacement cycle is 5-7 years in the government side and 7-9 years in the Ag side. With farmer income strong and commodity prices rising, business is good. Government municipal purchases have slowed but still holding to past cycle. Presenter still likes the story.

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