The EPS estimates for 3Q and 2006, by Wedbush Morgan, have been raised from $0.45 to $0.54 and from $1.48 to $1.57, respectively.
Note that entire increase ($.09) is for 3rd qtr. How in the world are they able to make such estimates? Since domestic car production has been cut (at least by the US manufacturers), this would be great news if true.
Wedbush Morgan posited the entire nine cents on footnote 11 to the 2nd quarter earnings report financials in the ACO 10Q. That note relates to a "subsequent event" After June 30 the IRS resolved their audit of the company's 2004 tax return. That resolution will require ACO to record certain entries in the third quarter for a benefit of $686,000 dollars from discontinued operations: a $3,181,000 for a reduction in tax expense: and a $661,000 for contingent professional fees. These entries account for all of the 9 cents their analyst raised the estimate by. They reiterate their buy and hold a price target of $32. They have enough of a following to cause a small retracement up in the long downturn. But, IMHO, the stock continues in a downtrend with no sign yet of a turn around. Some resolutio should become apparent in September and October. I expect to wait it out.