muwis123, regarding stocks that delist: I've had a few go that route. Some stocks have subsequently dropped in price; some have risen. Since I am one who hopes "value will out", I tell myself I have to be indifferent to where the stock trades or doesn't trade, because it's the business's results that ultimately determine value. (aside: For example,I'm still holding all my few shares of MHCO.pk. mentioned in previous post.)
My guess is that company stock holders see delisting as a negative, and if any stockholders were considering selling, the announcement or the actual delisting might cause them to take some action . So I suspect there's a tendency for the stock to drop and maybe stay down longer than if the company were listed.
Fwiw, as regards GNRL. I like the bearing companies. Making bearings requires good technology and manufacturing expertise. (Critical tolerances and high volume production are not an easy business.) As regards customers, since there's a myriad of mechanical devices that require the little darlings (usually bearings are little, but as you may know, not always), when one manufacturing sector is down, there are often others that aren't, so this supports demand for bearings. Finally, bearings are mostly (but not always) a small cost of the overall manufactured product - pennies if that-, so bearing price increases are usually more easily accepted by customers. (This all jmo; I could be wrong.)
GNRL has a low psr and p/book. However in past, GNRL has mostly had low psr and p/bk values (as befits what investors might consider a slow growth, mundane business). I don't see the stock as a particular bargain at current price (I could be wrong again). Perhaps GNRL holders are in for the long haul, in which case delisting might be a non-event. |
