Padogas Schadenfreude Padogas, here is what I wrote almost 1 year ago on april 5, 2011:
" The book value of AM is $1.65/ sh
On the balance sheet they don't have any LT debt, but off balance sheet they do have leasing obligation totaling about 12 millions until 2015 as follows:
$4.2 m for 2011
3 m for 2012
1.9 m per year for 2013, 2014 and 2015
These amount have to be paid whatever happen.
So if AM would close shop today, its final book value would be $1.05.
Their contract with Ford is due to expire in june 2012; so the leasing obligation of 2011 ($4.2 m) and half of 2012 ($1.5 m) ought to be easily paid up.
So even if Ford does not extend the contract over june 2012, AM will be able to pay the remaining lease obl. of about $6.5m through the earnings of 2011 and half of 2012 .
That means that in june 2012, if AM stop operations , it will be a company full of cash, clear of debts, with a value of at least $1.65 per share (almost all of it in cash)
This $1.65 value (in 2012) can be bought now for
.90. Nice deal imho.
Furthermore, AM filed a statement of claim for damages arising from breach of contract by GM.
Plus with all this cash, AM can initiate new ventures that will make speculators salivate with gusto. This would push the stock price to well over $2.00.
Good luck to all ! "
Anybody who heed that advice has almost received the cost of the shares (90 cents) in dividend alone.
Plus he has almost triple his money in capital gain.
Do you think they really care so much about the day to day small variations of the stock.
Now let's see a summary of your posts:
on ag 24 2011: " Given an almost 40% chance of recession in the US.....I would think this stock falls from these levels. Might be a good buy near a dollar."
on sep 5,2011: " Job growth has stalled in the US. Nothing else matters. Stocks go down.
on october 3,2011: " TSX is getting slammed. This stock is selling off."
on october 4, 2011: " Just tell me when the knives quit falling cause I won't be catching them. I would look at buying this stock around a $1. It needs to hit the lows seen in 2008. "
And again on the same day:" They are in a very precarious position in that they sell product to car manufacturers. If the market decline is predicting a recession in the US, car makers get taken out to the woodshed far worse than other industries. It would impact their business severely. The risk reward here just doesn't make sense even with the yield. Dividends can easily be cut or stopped.."
You never recommended buying. You completely miss the boat with AM . You failed to recognise its value, Always writing that it would go below $1 when it was over $1 and now you keep telling it will go below $2.
So having missed out on the juicy profit of AM you developped a clear case of mental wretchedness. You are happy when the stock goes down. There is a word for this : Schadenfreude or envy or happiness in another's misfortune.
Be more positive.
All your chatter is useless banter.