Altra Holdings, Inc. (AIMC)

Altra Holdings made the CAP leader board today with a 25% spike after earnings announcement combined with an analyst upgrade. If it had just been the earnings announcement, I probably would have stayed away, but I can't resist pitting myself against an analyst who clearly is well trained and versed in equity analysis. NOT.
Altra holdings is starting the slow climb back up to profitability, partially due to massive cost cutting and partially due to increased bookings of its products as inventory finally starts to get burned off. Overall, however, it's not worth 60% of it's pre-recession 5 year highs. EPS, though positive was $0.02 per share. Sales were down 34% yoy and forcasts are for a similar sales range. Altra was also hit by foreign currency exchange rates and I don't see that improving. Free Cash flow and payment of debt are two positives, but not enough in my opinion to make up for the net negative tangibles on it's balance sheet and it's large chunk of debt in a slow to grow economy. Share volume is low, even today, and Altra may attract more small-mid cap mutual fund type investing, but overall I don't believe it deserves the 25% uptick it received today.

under priced.