Using discounted free cash flow as a primary valuation tool comes with certain drawbacks. Looking at the reaction to American Vanguard's (AVD) warning on second quarter earnings brings one of the biggest back to mind - namely, that sell-side analysts and buy-side investors don't look at stocks this way and it can create significant disruptions for more long-term-oriented investors. While American Vanguard shares are going to sit in the sin bin for a while now, and a lot of the positive 2013 momentum may be sapped from this stock, relatively little about the long-term has changed.
Rain Has Soaked The Story
It's not exactly news that cold (relatively speaking) and rainy weather has had a definite impact...
Only subscribers can access this article, which is part of the PRO research library covering 3,608 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: