Guess: Still Overvalued, Continue To Sell On Any Pop
- GES is expected to post its fourth negative year in 2014, yet the stock price has not caught up to its deteriorating fundamentals.
- A large portion of free cash flows in 2013 were made up by changes in working capital- unsustainable gains.
- There is no sign of a turnaround, as capital expenditures have dropped drastically since 2011. Now they do not even cover depreciation expense.
- The poor growth strategy and high stock price make GES an ideal short candidate. The stock is overvalued on both absolute and relative bases.