Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

Xerium: Significant Opportunities Underneath The Weak Revenue Growth

The bear case on Xerium Technologies Inc. (NYSE:XRM) stock rests upon macro headwinds in the paper manufacturing industry that constitutes much of the company's current revenues, but there is enough initiative underway to create value for the shareholders and recent results are a good early indicator of the management's ability to execute on the same.

Absence of top line growth, weakness in lucrative printing & writing paper segment and increase in wages & benefits are causing nervousness among the investors, which is reflected in the stock that has not done much over the last 4-5 years. Besides the macro concerns, close to $450 million of debt for a $200 million market cap business is also giving investors a...

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