« What Obama actually believes | Main | Barack Obama is your new Nanny »
February 22, 2008
time to short AVR
From their earnings yesterday and the Lehman analyst:
* The results were slightly ahead of our forecasts, however the big news in the release were liquidity issues. The company has $223 million liquidity available in the form of cash in hand and availability under credit facility. This compared to remaining capex for the two plants under construction of $295-$305 million. The company's 2007 EBITDA was $58 million and given the trends in the commodity market, webelieve 2008 number will be substantially lower. The company has additional $127 million in auction rate securities, however, the market for these securities has dried up and the company may not be able to liquidate them on a timely basis. AVR indicates that in this case it will have to attempt to raise additional funds or slow down the construction of new facilities. Delay in construction could mean "material penalties" for the company.
read: "We are F***ed by the credit market"
look for them to get bought before year end.
Posted by Martin at February 22, 2008 8:28 AM
Trackback Pings
TrackBack URL for this entry:
http://www.nwventurevoice.com/cgi-bin/mt-tb.cgi/3031
Comments
Post a comment
Thanks for signing in, . Now you can comment. (sign out)
(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)