Dear Skane:
Although this stock looks like it is a good short, IT IS REALLY NOT.
This co. has real earnings, good fundamentals with poor TA.
P/E ratio = 9, total shares outstanding = 4 Million, floating shares = 3 millions, pays dividents and still has record earnings.
Zacks rec = hold,
FIRST CALL rec. = buy,
I would never short this stock unless I do have insider info on it from reliable people :)
It is too thinly traded also, so you can be looking at a great short squeezzzzz LOL
IMHO, the reason it is dropping is that DJ itself is dropping, but we all learned not to count on it dropping much lower. The DJ could still run up to 10,000 in few months, so, be very careful with what you short.
If you are convinced that it is a good short, please do not short no more than 100 shares, or better yet, short it thru options.
Here is a press release that could change your mind:
Ameron Makes Announcement
BusinessWire, Monday, August 03, 1998 at 04:19
PASADENA, Calif.--(BUSINESS WIRE)--Aug. 3, 1998--Ameron
International Corporation (NYSE:AMN) today lowered its expectations
for fiscal 1998 performance. Results had previously been forecasted to
exceed 1997's record performance of $4.73 per share. Although
full-year 1998 earnings per share are now expected to be as much as
15% lower than in 1997, these results would still be the
second-highest in Ameron's history.
"As we've previously reported, Ameron had a very difficult first
half," said James S. Marlen, Ameron chairman, president and chief
executive officer. "While our second-half sales and profitability are
on pace to exceed the first six months, we have concluded that they
are unlikely to offset the first-half shortfall."
Marlen also announced that the company is pursuing a
comprehensive cost-reduction program to improve its operating
profitability and long-term competitive position. Selected
manufacturing facilities and distribution centers will be consolidated
through 1999. The program will also include a substantial reduction of
managerial and administrative positions worldwide. The implementation
costs of these actions, net of anticipated savings, are not expected
to have a material impact on Ameron's 1998 earnings.
An unusual convergence of events are negatively affecting Ameron
in 1998. Unprecedented bad weather delayed concrete and steel pipe
shipments in the western United States and reduced protective coatings
sales in the West and Gulf States. A six-week strike at Ameron's
largest steel pipe plant also delayed sales. The steep drop in
worldwide oil prices is now affecting fiberglass pipe and coatings
operations. The ongoing economic crisis in Asia is also delaying an
anticipated recovery in Ameron's Hawaiian construction products
business and hampering the performance of coatings operations in
Australia and New Zealand acquired by Ameron in April 1998 from Croda
International Plc.
Ameron's domestic protective coatings business is now recovering
from weather-related delays, but the business is expected to have
lower sales and earnings than in 1997 due to falling oil prices and
continuing competitive pressures. "We are streamlining operations to
improve productivity in our U.S. operations. Additionally, we are
accelerating plans that we had at the time of the acquisitions in
England, Australia and New Zealand to improve operating efficiencies
in all three acquired operations," Marlen said.
The long-term outlook for Ameron's domestic concrete and steel
pipe business is favorable because of a record order backlog totaling
$151 million, compared to $84 million for the similar period in 1997
and $71 million at the beginning of 1998. "This business continues to
experience delays," Marlen said, "but its market position is very
solid."
Except for declining demand for oilfield products, Ameron's
fiberglass pipe sales remain strong and are forecasted to meet
original expectations.
Ready-mix concrete and quarry operations in Hawaii had a
relatively good first half because of cost-reduction actions in 1997
and favorable timing of first-half projects. Although second-half
performance continues to decline, the business is expected to remain
profitable as further cost reductions are implemented.
"Now our focus is to reduce costs and improve operating
efficiencies and profitability," Marlen said. "Long term, we will
continue pursuing our growth strategy through technology development
and acquisitions. We have complete confidence in the underlying
strength of our businesses, and we will continue taking aggressive
actions whenever necessary to ensure profitability and shareholder
value."
Cautionary statement for purposes of the "Safe Harbor" provisions
of "The Private Securities Reform Act of 1995": Any statements in this
report that refer to Ameron's estimated or anticipated future results
are forward-looking and reflect the company's current analysis of
existing trends and information. Actual results may differ from
current expectations based on a number of factors affecting Ameron's
businesses, including competitive conditions and changing market
situations. Matters affecting the economy generally, including the
state of economics worldwide, can affect Ameron's results.
Forward-looking statements represent the company's judgement only as
of the date of this report. Since actual results could differ
materially, the reader is cautioned not to rely on these
forward-looking statements. Moreover, Ameron disclaims any intent or
obligation to update these forward-looking statements.
CONTACT: Ameron International Corp., Pasadena
James S. Marlen or Gary Wagner, 626/683-4000
KEYWORD: CALIFORNIA HAWAII
INDUSTRY KEYWORD: BUILDING/CONSTRUCTION EARNINGS
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Copyright 1998, Business Wire
Companies or Securities discussed in this article:
SymbolNameNYSE:AMNAmeron Intl Corp |
