בס״ד

Moar Woar, Please! (HWM)

Posted on November 6, 2023

War means we waste nothing—time and words included.

Howmet Aerospace, Inc. (NYSE:HWM) manufactures stuff that’s used in the building of planes and their engines.

Her fundamentals look like this—

  • P/E is 31.37, with analysts expecting that to dwindle by a third to just 22.56 a year from now.
  • Annual Yield is a paltry 0.36%.
  • Price to book is altitudinous in the extreme at 5.18, and…
  • The company carries too much debt (D/E is 0.98).

  • As far as sales and earnings are concerned, sales are DOWN 11.73% per annum every year for the last five years, and…
  • EPS for the last five years don’t register, i.e., no growth for half a decade.

What did happen, however, is the company registered a huge increase in Q/Q earnings in its latest filing (+139%).

But when you go from a penny to three pennies, it’s not always an accomplishment.

That said, the move does provide us with an entry point for a possible 2600% gain, as the chart below shows.

Here’s it is—

And the G-d of History will decide if we’re right.

With kind regards,

Hugh L. O’Haynew

 

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