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Xerium Technologies (XRM or the Company) has experienced its share of difficulties over the past year, but the stock may pose an interesting risk/reward to the upside. The Company's stock has been torpedoed due to a persistent decline in sales related to paper machinery - XRM's main sales product - for the past 18 months. After emerging from a prepackaged bankruptcy in 2010, the stock peaked at ~$25 in April 2011 and has steadily declined to about $3. Despite its share of negatives, there may be a number of reasons to get constructive. Before getting into why the stock could be a buy, let's discuss what the Company actually does.

COMPANY DESCRIPTION

XRM produces clothing and roll covers...