This stock carries a large short position. I view a short covering rally which could send this stock higher based on decent earnings, a nice dividend and hopefully the announcement of stock buy-back program.
Looks like they expect to loose significant contract volume going into the next year. I bought a few shares for the dividend and for the long term, but I'm down 8% now. Hopefully their dividend is solid going forward.
Earning cut in half? Who says? In half from what? UVV earned $1.11 in Q1 2011 versus $0.90 in Q1 2010. True it is half of 4Q 2010 ($2.09) but isn't this seasonality? Looks to me like UVV is right on target with estimates, comps, etc.
Think key points will be in their year-end CC. Last year they announced that a US processing contract would not likely be renewed for the the 2011 season. That's what I want to hear more about b/c altho FYE 2011 should be fine, it's next year I'm worried about. They are well managed co so expect them to handle the challenges in long run. My 2 cents worth!