If you short this cat, you will have it scratching you all the way up. This baby is going to 10, then 15, then 20. Market cap is barely 100 mil, for cash flow of 300 mil! This is because debt is 1.3 bil. So when the company buys back 100 mil of debt, the market cap (i.e. stock price) should double.
This stock is really a warrant on the value of the company, after it has bought back much of its debt. But to do that, it must first scare off all the debt holders, by nightmares of bankruptcy, so they would sell the debt at 66 cents on the dollar.
Any of the scaredy-cats here falling for it, will be selling this stock to me... I have been buying and buying and buying... and I`ll be buying more.
A PE of 1x doesn`t come up every day.
see how it goes under $5. and then explodes back over $5. It does this for a reason - bottom. Any one shorting here is an idiot because that ship has sailed. DXM buys back debt at a good discount.
This is good news and increases the bottom line.