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Albemarle Corporation Message Board

  • sotampagator sotampagator Jul 18, 2013 10:31 AM Flag

    I'm Bearish on ALB for First Time in Many Years

    I really question the leadership of the company. Why would anyone blow $600M in stock purchasing facing the headwinds the company faces? Does the present leadership not understand that these massive overseas investments could result in huge write-downs if the Asian and European economies do not improve in the next year or so? This company was poised for greatness about 24 months ago when Mark was leading it, but it's not headed for good things from what I can tell having following it for almost 20 years...

    Sentiment: Sell

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    • And now the inevitable reorganization which usually means you CEO is in way over his head. This is getting sad...

    • There was nothing in the conference call to create any confidence in their management team. They seem to be out of touch with their customers. Or be wishful thinkers. Or both.

      Autumn may be their season of circling shorts and golden parachutes.

      • 1 Reply to grouper490738
      • Luke admitted on the call that they are already up against target debt levels. The scariest thing was his comments about achieving the eps goals for 2015 through stock buy backs, not earnings growth. Does he not understand that the shares outstanding are some what irrelevant and that purchasing shares at an overvalued public trading price is not an effective use of debt? If it were, the LBO boys would be taking down this type of company left and right. I'm sorry, but handing him the CEO job was a major mistake. If he further leverages the balance sheet for stock buy backs and the company has a hiccup, the company could face a cash flow problem. That is unbelievable considering the strength of the balance sheet 24 months ago.

    • It is unusual to write-down tangible book value as contrasted to intangibles. I didn't hear very much positive in the CC.

85.11+0.29(+0.34%)Jul 28 4:02 PMEDT