Tenneco, Inc. (TEN)

Exhaust regulations are hitting the off road industry starting next year. TEN is capable of capturing significatnt new revenue not available to other tier one auto suppliers. In 5 years, this may not be considered an auto supplier stock.

Tenneco is an automotive supplier that is currently losing money. Its balance sheet is a mess. Despite these facts, Tenneco has massively outperformed the market in the last year and six months. I think the sustainable debt for Tenneco is approximately $600 million, but Tenneco's actual net debt (i.e. debt minus cash) is $1.3 billion. This leaves $700 million that must be paid from future earnings (if any). In its best years, Tenneco earns about $50 million. Insider selling is significant in the $11 to $17 range. CAPS 1, Stockscouter3.

bankruptcy candidate

The recession is officially over... for America's competition. Going to Zero.

Tenneco has the market for offroad emission standards required in 2010 as well as other proprietary technologies that poise Tenneco to shoot past their competitors.

topping.... (weak rally attempt on declining volume)...
2 consecutive down candles for first time since July (bottom of last wave)

stochastics and macd rolling over
wide market losses hurting even previous leaders
(liquidity crisis? overproduction?)

cash for clunkers has only enticed buyers to buy sooner..
demand will still be anemic as long as rebate gimmicks are not continued

pick valid for 5+ years if this company still exists LOL

they've had neg FCF 7 years out of the last 10.... there's not much more debt they can raise, as their liab = $3bn, its mkt cap is around $700m...credit is tight already, nobody's crazy enough to give them more $...tot liab are 282% of pp&e wow (hello collateral)

on avg their gross margins are 14%, even if their sales double bcoz of gov and their sg&a, r&d, +other expenses go up by only 70%, they still have a loss

recent run up because of speculation about green nrg etc and big (irrational) money jumping on a running train that is about to revert

final cherry on the cake is the CFO + other officer sold $250k each of shares on aug 4th, could also be an automatic sell at $17, but still it's because it is overpriced

Increasing debt, debt 2X market cap, negative equity, high cost of revenue.

Beware that pesky 3.6 beta, and the -10 EPS. Oh, and the insane run-up from lows. This stock screams SELL! about as loudly as PALM.

1. big turnaround since 1Q: up 466% this quarter
2. primary supplier to Ford, who already benefiting greatly to bankruptcies of GM and Chrysler.

let it ride it's been steadly increasing

I'll take the bait here, just on the move off the March lows.

negative equity, automotive industry

Parts Suppliers like Tenneco have been extremely volitile the last few months. They rise on little/no reason considering they are basically insolvent and will be for another year. I do like Tenneco better than some others as their aftermarket/repair side should hold up as people keep their cars running longer. Their sell to OEM's, however, is in the tanker. Goverment stimulus for new car buying may help, but I still believe they are being seriously over valued until the economy proves itself in their favor. Net Negative Stockholder Equity, Net Negative Tangible Assets. Heavy liability in pension plans, etc. Accounts Payable double accounts receivable. High debt, negative margins.

Gimme three steps as Lynyrd says. Automobile industry shake up coming soon and plenty of upside from here to profit from it. Let's respoke the wheel not reinvent it.

Already losing money, highly vulnerable to any disruptions at the top of the supply chain, ie, GM or Chrysler bankruptcy.

Comon sense company leadership, foregn automotive market as well as aftermarket industry opertunities

The change in the Exhaust regulations, China buying more vehicles, Gaining new markets overseas, and the fact that absorbers will always be needed no matter the vehicle.

Car industry

full disclosure - my mom works for tenneco headquarters in monroe mi, however I don't talk to her about the company, that said I pick this one for her. I do think this will outperform no matter the economy because they don't just supply new automakers but the aftermarket as well, and as the economy falters people will be more tempted to drive their cars longer, requiring repairs which tenneco supplies