Amit Chokshi, CFA
Hedge fund manager, long/short equity, bonds

Upside Ahead For Xerium Technologies?

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 used...

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