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?
And what if we told you the daily chart looked like this –
Wouldja still be a taker?
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.
With kind regards,
Hugh L. O’Haynew