בס״ד

Of Plumbers, Pipe-Fitters and Parabolic Profits (NYSE:WMS)

Posted on October 12, 2020

Don’t wanna get too personal here, but we’ve got a few questions.

What would you say about a 55 year old industrial company whose earnings were down 363% this year?

Whose insiders had sold off over a third of their holdings in the last six months?

Whose P/E was 43.6 and P/B was 8.2?

Who offered a half percent annual dividend and carried a debt to equity ratio just a hair under two (2).

Would you go long a stock like that?

And what if we told you the shares had gained 216% since the Batflu bottom in March?

Would you still be on side?

Well… I certainly –

And what if we told you the daily chart looked like this –

Wouldja still be a taker?

Us neither…

The stock we’re eyeballing is Advanced Drainage Systems Inc. (NYSE:WMS), a company that makes pipes and other equipment for the hygienic transport of human ordure.

And as the chart above shows, she’s had quite a run.

But…

With kind regards,

Hugh L. O’Haynew

 

One response to “Of Plumbers, Pipe-Fitters and Parabolic Profits (NYSE:WMS)”

  1. Brad says:

    We are in some trouble on the BBY, TTC and PG trades expiring October 16th. The S & P is rising virtually every day! I am gonna wait until things start to turn in the broader market before initiating more shorts. Would like some longs in addition to the shorts. U.S economy on the mend big time despite what you might read or hear from MSM. At least in the South things are about to go boom you can bet on that. Thanks

Leave a Reply

Your email address will not be published. Required fields are marked *