I am interested in ACI. I read the article in Kiplingers personal finance, which said it was a good buy at $43. I held off on buying while I looked into the stock more. Then it dropped down to $30, and then down into the $28 range. I started to wonder if it was going way down into the mid, or even lower 20 range for some reason.
Would anyone like to express their take on this company, and why it is going down right now? I am considering investing about 40% of what we call our "car fund", since that is what the money is earmarked for. I like stocks that have good potential to return 15% in the next 6 months or so, and it seems like this one might do that.
However, I am worried about the company debt load as well. It is pretty big, and normally I stay away from businesses that have large amounts of debt. In this case, it appears to be a good sort of debt, since they were using their money to buy strategic low sulfur coal, which may be a great long term investment.
I never realized that coal prices might be tied so much to the weather, either.
Anyway, I will look back here tomorrow morning and see whether the majority of replies believe that this is a decent short term (6 month) investment. If not, then I will look elsewhere for another way to put our money to work.
Fuzz, hold off buying until it gets to $17. ACI is actually a PERFECT SHORT play here. Im all over it SHORT at 28.10. We are not going to have ANY kind of WINTER and this alone will slow kill this company. Crude is falling, some say it will be in the 30's before the year is out and coal will go right along with it. Great company, lots of debt, but the weather patterns are changing. Ever hear of ''global warming?'' ACI will drop a $ a day from here with very little chance of recovery. Put you ''car money'' in this stock, but SHORT it!!
this is a solid company with great long term prospects.
more than a few of the ACI contracts are expiring and now it is time to renew them at much higher prices.
ACI future is going to be very bright indeed. The next 3 to 5 years shouldsee growth at above 15%.
>more than a few of the ACI contracts are expiring and now it >is time to renew them at much higher prices.
If that is the case, then why hasn't the market reacted to this increase in contractual income by sending the stock higher? It seems to have been doing the opposite.
In fact, haven't prices for natural gas and coal been drifting lower lately? How does this translate to higher contract prices?
I pulled the trigger today for 2,000 @ 28.66.
I have been waiting for it to go below 29, I sold last batch I purchased at 29 at 35. If it goes below 28 I will buy 2,000 more. Anything under 29 for this stock is a gift from the Money Gods. Just buy it and hold on for the ride.