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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