Tom Shaughnessy
Long/short equity, special situations, deep value, tech

Xylem: A Faltering Company Offers A Unique Shorting Opportunity In The Water Market


Seeking Alpha in the water market is hard to find since the market is fragmented with many players focusing on one area of expertise. Yet, if a company that is faltering can be found, profit can be earned on the downside. This article will detail a potential short play in the water market.

The Titanic Hit An Iceberg

Not to long ago, shares of Xylem (NYSE:XYL) sank 17% following a negative surprise in its earnings. The company cut its revenue outlook 5% for 2013 to $3.7 billion from $3.9 billion originally.

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Some of this is shown through the $40-$50 million in restructuring and $20 million in realignment costs the company incurred for repositioning it's...

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