Albany International Corp. (NYSE:AIN)
The Company is a producer of custom-designed paper machine fabrics and process belts that are essential to the manufacture of paper and paperboard.
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PMC industry is dying. The world is going paper-less. This is reflected by Albany's steadily declining revenues, and an industry peer declaring bankruptcy in 2009.
This firm has debt issues. The interest coverage is low, and will likely keep falling. $.36B of LT debt maturing within 3 years. Albany has some liquidity, but the majority of current assets is inventory, recorded at cost. (inflated), and they have just shy of $.1B in cash. This much debt maturing soon with limited liquidity and no profitability should raise concerns.
Albany has only underperformed the market by 5% over the last year, and has had a massive price run up in the last 3 months. Perfect timing to short a troubled company in an unattractive industry.
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It is crushing the competition and does not have competition in his growing market
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Earnings estimated for Nov. 2nd: .16
Last year same quarter earnings: .5
Thats a 68% decrease in EPS
The stock is up 30% in that same time frame.
I calculated p/s for this company assuming the last 2 quarters eps are as estimated, it would make this companies P/E at 28.68. I'm a seller of this stock til it's P/E gets back to around 15
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Financial troubles. After chk999.
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It'll take awhile to catch up again.
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