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Albany Molecular Research Inc. Message Board

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  • mcdambras mcdambras Nov 29, 2011 8:22 PM Flag

    Hope vs reality

    I wouldn't touch AMRI with a bargepole. Really.

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    • I agree. From what I gather, most of the US operations will cease in the next few years except for some GMP and MFG. Cash burn rate in the US is to high and they cannot be compettative.

      If anything short the stock.

      • 1 Reply to tstockpicker
      • "If anything short the stock." tstockpicker

        With all due respect, I know that it sounds cool and dramatic to say “short AMRI” but allow me to address to cold reality of the situation. First, shorting is expensive and your liability is unlimited. Unlimited. Second, the risk-reward scenario does not currently favor shorting. The stock closed at $2.09 yesterday. You take out a stock loan for the shares that you borrow and pay commissions for the shares sold. If AMRI falls to $0.09, then you cover your short position and pay commission on that transaction. Then you also have to pay the interest on the stock loan. Those are a lot of fees chipping away at the $2.00 per share made by shorting. You could make more money by picking a garden variety stock or a stock with a decent dividend or following a Dogs of the Dow strategy.

        I know that amrithebest, and others, yakked on and on about "the shorts" on this board. They had no idea about what they were talking about.

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