The main point is that the stock did not nose-dive shortly after 11:00 a.m. because of its valuation. My reply was to bot_feeder who argued that the stock was down because it was so overvalued. I began my response to him with some of MTSN's ratios that indicate the opposite -- it's undervalued.
I could argue that the valuation is still okay with the price/sales still under 2 and their PE to growth ratio under 1 but these numbers as well as enterprise value aren't even last week's news and all of them have nothing to do with why the stock was down 11%.
I don't see where you're getting he immediately bought CCS. He wrote, "Not ready to buy either in this puffy market, but will be watching them both much more closely."
the thought: to look for stocks that were projected to have the greatest EPS increases
The effort: sifting through the complete NYSE listings in Barron's.
Is Cramer ever right when he predicts where a stock will be two weeks from now?
What's with the six thumbs down for this post? It may not be exactly what Kemet longs want to hear but it shows some thought, as well as effort and it mentions the company's fundamentals.
Are you shorting this stock? Considering the low today was $14.71, the low 14's doesn't seem likely unless there is a general market sell-off.
Pete is the person who really screwed the shareholders. The stock went from $40 to under $3 in 2002. What did Pete do? Built the big office building in downtown Detroit that wasn't even needed but enabled Pete to look like a hero briefly. The money spent on that building could have bought back half the shares at $10 and put a floor in the stock. But damn the shareholders when Pete's ego is involved.
One reason behind Kemet's so so price action since the earnings report, analysts have lowered next quarter's sales and EPS estimates. AVX & VSH have also been very weak the past couple of weeks.
This meltdown, from over $5 after the 9/14 quarter was announced, got started after Kemet said they couldn't refinance the debt. I assume that's the biggest drawback and what's behind this pathetic valuation. It's not that the debt is too much, it's that the interest rate is too high and even more important, the debt is due too soon.