MEA pps has gotten ridiculous low. Metalico is now valued higher on closure versus operating as an ongoing entity.
The Russell 2000 rebalancing was totally unfair to Metalico shareholders has they manipulated the price lower than the already insane pps. They were able to supposedly acquire in excess of 2 million shares during regular trading and 700,000 in after hours. The pps did spike twice on Friday to $1.29/share.
MEA had a buy imbalance of 854,000 at the Fridays close.
MEA should open higher on Monday AM as the imbalance is settled.
Ya know, it just goes to show how bad this sector is that that best we can discuss or hope for at this point is "salvage" value. Not even when the Dow was at 6000+ in Mar 2009 were things so dire and pathetic. One as to wonder if there is ANY hope at all here.
Metalico liquidity is quite strong with nearly $5 million cash and $42 million available on line of credit. Total working capital per SEC 10-Q March 31st, $80 million.
Acquisitions to wheel and spoke operations of Metalico could be forthcoming as overcapacity of some players within the scrap segment are shook out.
Working capital is current assets minus current liabilities.
Not to mention the fact the book value of the company.
If another company were to do a hostile take over they could end up with $20 mil cash.
I don't understand how this company keeps dropping.
Even if it is poorly managed, the liquidation value alone makes this stock worth over $2
Does anybody have any insider info?
What is causing this to drop as such?
Bad news, bad press, bad sentiment?
It seems like a no brainer to buy right now!
IT'S NOT A BAD MEA GUYS!!! It's a "BAD sector!" Like duhhh.....just go look at all the other similar sector stocks like: CLF, VALE, SCHN AKS, X...etc, etc... They're ALL at multi-year LOWS fellas!! IT'S ALL ABOUT CHINA!! Hey..."NO TICKY NO WASHY".....know what I mean??
I do business with Metalico, or I used to. They are broke. The checks they are sending me for my scrap I sold them are bouncing and I'm having to request cashier's checks to make sure the funds are real. This company is going belly up fast!!!
Bottom line is if you think MEA will stay in business or get bought out it is a BUY. If you think they will eventually go belly up than SELL. The industry is going through a rough stretch right now so greatly improved numbers are 1-2 quarters away at best. Personally I believe they survive and their day will come. Expect to see a shakeout and a lot of plant closings by the really big guys.