Look at the share count. It continues to go lower. They have around 406 million shares outstanding currently. They should continue to buy stock at current levels. Above $40 I thought it was overvalued (they wasted money buying stock at these levels). Unfortunately as the price goes lower they will likely suspend stock buyback. I will look to buy below $25. At that level it will have a dividend yield of around 4%. At $20 close to 5%. Would not mind a big market pullback to get into this one.
August 2006: 828.5 million shares
September 2007: 798.2 million shares
September 2008: 711.4 million shares
September 2009: 697.8 million shares
September 2010: 618.8 million shares
September 2011: 510.2 million shares
August 2012: 480.9 million shares
August 2013: 467.5 million shares
August 2014: 434.8 million shares
August 2015: 406.7 million shares
Long term I agree. I just think the market as a whole is shaky and with overhang of PMFG you will be able to get this below $8. CECE is racking up debt at an alarming rate. I hope after this acquisition they will focus on earnings and organic growth. Also to pay down some debt.
Smart money selling into this. I would be cautious (HOLD). They are buying a debt laden company. Will see what it does after the acquisition. I have a feeling the first few quarters after the acquisition they will be barely profitable or a slight loss.