Tuesday, June 25, 2013

Seeking Alpha: Wet Weather Soaks American Vanguard, But Analysts Look All Wet

Using discounted free cash flow as a primary valuation tool comes with certain drawbacks. Looking at the reaction to American Vanguard's (AVD) warning on second quarter earnings brings one of the biggest back to mind - namely, that sell-side analysts and buy-side investors don't look at stocks this way and it can create significant disruptions for more long-term-oriented investors. While American Vanguard shares are going to sit in the sin bin for a while now, and a lot of the positive 2013 momentum may be sapped from this stock, relatively little about the long-term has changed.

Read more here:
Wet Weather Soaks American Vanguard, But Analysts Look All Wet

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