American Reprographics Company (ARP)

HLChin (83.23) Submitted: 3/10/08 7:37 PM : Start Price: $15.79 ARP Score: 11.11

I think that American Reprographics has been beaten down way to much. It's certainly not my favorite stock but it's seems to be cheap to a point that it's a bit senseless given its dominance in the re-prographics market.

At a P/E of 13-14 and a growth rate of 15%, there is a slight upside from the P/E re-rating itself. I see that ARP deserves at least 15-20 rating. At 16 bucks and change, the thumbnail says would give a 30% to 38% return over the next five years.

There exists a risk due to the higher amount of debt than I am like, but the strong owner's earnings of USD 100m per year should give much comfort. Slower contruction may hurt the business in the short term as well, but ARP is certainly a great consolidator in this regard.

At since its CAPS, I will go with it!

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