American Axle & Manufact. Holdings, Inc. (NYSE:AXL)

Cramer

Yahoo small cap growth (P/S <1).

Total Debt / Equity    N.A.
Price Earnings    4.70
Price/Sales    0.27
Price/Book    0.00
Price/Cash Flow    2.40

I believe American Axle & Manufact. Holdings, Inc. will bring in 348.1 points considering a 15% S&P performance.

US economy will keep chugging along and emerging market growth will send this stock higher

American Axle & Manufacturing was one equity that I mis-played during the peak of the recession. Debt appeared to have by the throat and it was near $0.80 at bottom. I learned from this one and several others that debt holders do not want businesses and will make considerable concessions. I also learned more about cash flow and it's importance, especially in relationship to debt. That was then and this is now an American Axle is not getting any respect. Down 30% from it's January highs American Axle is still kicking out cash and it's forward P/E is sub 5. It reported excellent earnings this week and the markets, (with the help of short covering) rewarded it interday almost 10%. The last two days in the market selloff it's given that 10% back and is back where it was before earnings. While the wheels may be coming off the economy, American Axle isn't going to get a flat that fast. Consumer spending and car buying may be in jeapordy if the market turns but American Axle has a strong position. They increased estimates for next quarter, whcih should be solid estimates a month into the quarter.

With the debt, American Axle has continued to be net negative book value so it could look scary. It did slow it's cash flow, but receivables popped over $60 Million. While old receivables might need scrubbing, new receivables should be good and is reflective of an increase in sales. The auto industry appears to be one growth area and issues in Japan favored American makers. While this appears to be stabilizing American Axle reporting sales up 23% and over $0.65 per share earnings. While auto parts makers usually sport a low P/E in their industry, sub 5, increased forcasts, and growth appears to me to be a good place to park some funds.

Axl

Low PE and high profitability with strong operating margin offset significant amount of leveraged debt.

new position as of recent 13F
minor position (less than 05.% of assets)

Should benefit from auto industry comeback.
Long term 3-5 years.

Debt. Automotive. Relying on GM.
Strike Three!

Total Equity (435.70)

I have seen this movies before.Stockholder are being diluted again.If the 500 milion isn't enough, there is always prepackaged bankrupty. Look at Lear. I find it amazing that management will get 10% of the new company and shareholder get the shaft.Shareholder own these company and must get better representation. Look at FR price when they did their secondary offering 7.00 and now 4.20 and they have a book value in the positive side I'm taking a walk on the short side ,

S13S50 BBB

Bad sector, Bad part of the sector, too much debt, no shareholder value. What's not to hate?

this is either going to bust within the next few months or its gunna skyrocket... its all up to GM if this company is going to go under or stay afloat...

3........2......1.........

crash.

"Dead company walking. Dead company walking. We got a dead company walking here." -From "The Green Mile".

Let me break this down so that even the publicly schooled can follow:
GM gave $100 million to AXL. True. AXL also agreed to take on UAW workers with liabilities in excess of $800 million and let GM out of a contract. A cheap price to pay.

This company has $48 dollars in liabilities and $1 in cash. It's losing more money per month than it has in cash. This company will probably try an offering to raise cash. An irrelevancy. It will still be out of money by next year even if it succeeds.

UAW workers and AXL shareholders should sue after this thing goes bankrupt. They have been completely duped.
Note: I was publicly schooled so don't give this post to much credit.

Still in big Debt , and the outbrke in the last few days was in response to the news not to the real weight of the company .