PE of 29 for 2011 based on current earnings estimate and a 17 pe based on projected earnings for 2012. That is way too much value prebaked into this price . Even if they hit both of those projected earnings the PE is too high for this company, way too high. New car production drastically cut due to supply chain problems from earthquake will cause earnings miss and that will really put these PE's out of wack (although that will be just a short term problem, there will be others). 1.2B debt 233 mill cash. Makes for an easy short at least to 39 short term, much more in the long term, but I only carry short positions very short term.
You may get lucky and get $39 within the normal cycle. Short this long term and you will be saying welcome to walmart! There will be some news come out of Seward that will break you if your short!!!! Mark this post Tenneco to $70.00 a share