I picked up some shares today. The technicals (bollinger, stochastics) look great, the company is prime for an acquisition and has fallen > $7 in 10 days. Once the market turns back around, hopefully tomorrow, MYE will be back up to $15+.
KeyBanc Upgrades Myers Industries (MYE) To Aggressive Buy 12-12-2007 03:05:36 PM KeyBanc upgrades Myers Industries (NYSE: MYE) to Aggressive Buy with a $20 price target.
The firm said, "We believe MYE has a terrific collection of assets, and recent due diligence suggests that underlying business fundamentals remain solid with numerous catalysts to emerge for 2008 and beyond. Catalysts include: 1) Price increases; 2) Returns from restructuring/acquisition integration; 3) Lawn & Garden volume improvement from more normalized weather/order patterns; 4) Improving competitive landscape; 5) Resin substitution opportunities; 6) New product introductions; and 7) Tech upgrades, geographic expansion and overhead streamlining in Distribution."
Here is some more detail. I do not have a link. Valuation: "Historically from 1999-2006, MYE traded at 7.0X on an EV/EBITDA basis, and at 15.9x earnings. Using our new and what we believe are conservative assumptions, MYE is trading at 6.9X on an EV/EBITDA basis and at 15.9x earnings on our 2007 estimates; using our 2008 estimates, the stock trades at 5.6x EBITDA and 12.1x earnings. Over the past three years, the stock has generally traded in a range of 6.5-8.0x on an EV/EBITDA basis, equating to a range of $18-$23 based on our 2008 estimates; with the stock currently trading well below that range, we believe downside from here is limited. Our $20 price target represents 7.0x our 2008 estimates."
I will post more later and try to figure out a link.