Do you think Chris Katjem, the occasional investor from Grand Rapids, who wrote the article “Cenveo: Printing Company Significantly Undervalued For 2013” on Seeking Alpha may have revised his opinion after Cenveo Announced their Fourth Quarter and Full Year 2012 Results on February 27, 2013?
The Seeking Alpha article “Cenveo: Printing Company Significantly Undervalued For 2013” you are referring to is from Jan 7 2013.
I dont have to read his mind. it was a bogus article. alpha on a stock assumes that the investment is on the sml, and cvo is not. its beta is over 2, which anyone will tell you (but i keep repeating) is terrible. a beta of 1.2 is considered by many professional investors to be speculative at best. the only way to make money on cvo is to short as it drops, hold for those short periods it has a knee-jerk reaction up, and pray every day you have money in it that today isnt the day the prepackages bankruptcy or obnoxiously capital transaction occurs. There is no other way out. Burton could sell all his divisions, and he would still be underwater. No one is going to buy these types of businesses at large enough premiums to absorb all that negative net asset value. The reality is most of us have worked for this company, or still do. I worked in the finance department. I have worked with the people making these decisions. I hope you dont lose your shirt, because goodness knows you may have a family. please dont bet their future on a cvo long position. you have better odds in vegas. even simple financial analysis confirms this. and since you are such a great study, and great investor, why bother with anything that doesnt pay a dividend? the only investments over any period of time that make money pay dividends. everything else is gambling, pure and simple.
We can't read his mind, but as an educated guess, probably not, because (1) the 4th quarter loss was expected, and (2) earnings are expected to be positive each quarter in 2013 and rise significantly as the year plays out. Best of luck.
"Day after day,
Alone on a hill,
The man with the foolish grin is keeping perfectly still
But nobody wants to know him,
They can see that he's just a fool,
And he never gives an answer,
But the fool on the hill,
Sees the sun going down,
And the eyes in his head,
See the world spinning 'round."