HEES
H&E Equipment Services, Inc.
stock NASDAQ

I agree it has potential, but for very different reasons. They have good potential of being acquired at a premium price just to make them go away. URI losing out on the HEES acquisition just means they are sitting with a boat load of cash looking for their next target. EQPT certainly fits the bill if they can win enough market share to justify taking on their debt load.
Problem with gaining market share right now is you have to do it through quality service, not cutting rental rates. The majority of the current fleet was bought at post pandemic prices, but rental rates are dropping to pre pandemic levels because equipment supply has caught up to the demand.
No doubt EQPT will win a lot of business in commercial construction due to their aggressive rate strategy, but will they be able to gain market share in the industrial sector where the legacy rental companies are entrenched? Time will tell. Very excited to see how it all unfolds.

I agree it has potential, but for very different reasons. They have good potential of being acquired at a premium price just to make them go away. URI losing out on the HEES acquisition just means they are sitting with a boat load of cash looking for their next target. EQPT certainly fits the bill if they can win enough market share to justify taking on their debt load.
Problem with gaining market share right now is you have to do it through quality service, not cutting rental rates. The majority of the current fleet was bought at post pandemic prices, but rental rates are dropping to pre pandemic levels because equipment supply has caught up to the demand.
No doubt EQPT will win a lot of business in commercial construction due to their aggressive rate strategy, but will they be able to gain market share in the industrial sector where the legacy rental companies are entrenched? Time will tell. Very excited to see how it all unfolds.