Back in my Wall Street days, American Vanguard (NYSE:AVD)
would have been called "a stock split the hard way", as the shares have
dropped almost 50% over the last year on persistently weak sell-through
of soil insecticides and herbicides for corn. Weather has had an
impact, as have acreage switches to other crops and less insect
pressure, but the fundamental issue is that management significantly
overestimated the on-the-ground demand for its products and is now stuck
working through inflated inventories and inefficient overhead
utilization. I don't think the positives that moved the stock in 2013
have all vanished, but management has a lot to prove before these shares
can move back into the $20's.
Continue reading here:
American Vanguard Starting A Long Road Back
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