Update: A.M. Castle Earnings Disappoint, Write-Off Makes Them Worse - Stock Drops 25%
Martin Vlcek • Thu, Jul. 31
- Due to a large goodwill write-off and very disappointing Q2 results, the stock dropped ~25% within two days.
- The thesis played out as I feared. The stock had significant downside before the turnaround was complete. Downside risks, including high debt and short interest, should be fully hedged.
- Thanks to goodwill impairment and a massive stock price fall, now is a good time to buy. I update my price target to $15 to be reached within 3 years.