American Reprographics Company (NYSE:ARC)

CAPS Rating: 2 out of 5

A reprographics company in the United States providing business-to-business document management services to the architectural, engineering and construction industry.


Player Avatar stockfreak1 (21.76) Submitted: 11/21/2009 6:57:07 PM : Underperform Start Price: $6.02 ARC Score: -44.62

ARP had a relatively high Goodwill impairment charge in the 3rd quarter. In addition their revenue was down severely @ 44% from last year (noticeable especially for summer months) reflecting early 2003-2004 levels. Going into winter where revenue can be even tighter I doubt that this can continue to maintain even this price. Great company, when good times return, but uncertainty is likely to rear it's ugly head as their slugs of debt become closer to being due. This company has probems that similarily (and compoundingly for ARP's case) plaguing the housing industry. As long as commercial space stays widely avaliable, their business will dwindle until things pick up again. I love the CEO. He's doing the right thing by taking a pay cut, these problems are just beyond reach and budget control is the number one priority right now.

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