Am I Missing Something To be upfront, my thought is to short AM based on the following :
- company has no new business past 2014, will close plants and lay off employees
- as others have pointed out, solid assets probably worth nil - industrial equpment has a pennies on the dollar resale value
- residual cash value per share after wind-up of existing business about $1.85 if (big "if") they can not bleed $ in the next year (March 2013 Financials show $41 mil in cash / receivables divided by 2.2 mil shares)
- will management want to put themselves out of jobs or collect salaries while looking for another opportunities for AM and keep the company going?
- AM is supposedly buying back up to 1.3 mil shares - are these being cancelled as they have in the past or sitting in the treasury for redistribution - and remember they are using cash to buy them so although saving on dividend payouts it is still a dillution of cash on hand
- why would anyone wait for the next 1 1/2 years (minimum) to make the difference between todays price and the potential wind up value - Im sure this is a strictly retail stock at the moment
Feel free to set me right