Not sure how you get PE of 14. PE is 5 for 2016 based on $5.80 avg. forecast earnings and if they can make $3 - $3.5 in 2017 then PE will be around 9. Very cheap stock! I think funds are accumulating. Its now a valuation play. Its also a possible buyout candidate. Being short is very risky now and if they legislate more stringent tanker car requirements again soon then it will send these stocks up sharply.
This will continue to be volatile. May see $26 again on a bad day. I don't see this going to $20 with those kind of earnings. Even if 2017 earnings are only $3.00/share I don't see justification in a much lower price unless entire economy crashes. The dividend should also support the price. What we need is some INSIDER BUYING.
Probably a temporary capitulation of shorts. Those that shorted prior to earnings and are happy with $3 move are getting out. Some shorts may not see much more downside below $26.
Imagine if any of the FANG stocks had EPS like this... This makes no sense. They even added 1700 units to the backlog last quarter. Buffet must be looking at this company and salivating.
So who is selling their shares with $5.70 - $5.90/share in forecast earnings???? At this rate the company can buy back nearly every outstanding share in 5 years.
Yes he bought more IEP in the 1st quarter and has paid more than the current price. He may just decide to take the rest out and go private. Anyone patient will be rewarded. At the very least IEP is probably buying back its own shares.
Weird how this stock did a dip in the morning then spent most of the day nearly flat then down $1.50 into the close. Must be thin volume.
Other thing is that Carl bought a bunch more IEP shares this last qtr so there isnt much left in the float. If he takes the rest out it could be at a hefty premium of say over $80.
Barron's article is based on last quarters data. Since then he's sold AAPL, FCX is up and HLF is up big. Be careful with Barron's motives.
He's was right on HLF (Ackman was wrong), he's right on AAPL (sold for a nice gain), right on NFLX and he's now right on FCX and making money. Only major miss is CHK. CVI cyclical and will recover.
Carl owns 90 percent of IEP so I doubt it. AAPL was sold for a big gain.
Yes this is mostly due to Barrons article. Will be back up in a few weeks. Shorts are trying to piggy back on that article.
Bigger question is, why would Ackman be long VRX? He should of joined forces with Mr. Icahn and been long HLF and short VRX.
He may just sit on his AAPL gains for awhile too. I am hoping he buys a beaten down TRN or GBX and merges it with his ARII. Pepboy's was a big purchase.