HAYZ @.30--bargain of the century or absolute rubbish?
let's watch it and maybe make some bucks if u turn comes: warning:
read this press release first before proceeding...:) http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20090112&id=9506821
S&P lowers Hayes Lemmerz corporate credit ratingJanuary 12, 2009 4:00 PM ET advertisement
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All Associated Press newsNEW YORK (AP) - Standard & Poor's Ratings Services on Monday lowered Hayes Lemmerz International Inc.'s corporate credit rating, and kept all of the automotive wheel manufacturers' ratings on negative watch.
"The downgrades reflect our view that declining auto sales and production in North America and Europe during 2009 could lead to higher leverage and thin liquidity as Hayes struggles to reduce its negative free operating cash flow over the next several quarters," said S&P's credit analyst Gregg Lemos Stein.
The continued negative watch suggests there could be more downgrades.
The downgrade reflects the Northville, Mich.-based company's high leverage, negative cash flows and declining liquidity, as well as multiple business risks inherent in the automotive supply industry, said S&P.
While Hayes in recent years has worked to divest operations outsides of its core business and reduce its dependence on the Michigan-based automakers' U.S. operations, it's geographic diversity will provide little benefit in 2009, according to the agency.
"We expect demand in most global markets to remain weak throughout 2009 and perhaps longer because of the weak economy," S&P said.
Sales in the fiscal third quarter ended Oct. 31 were down 10 percent due to a sharp decline in automotive production in Europe. That figure worsened in November and December, according to S&P.
The agency anticipates sales to worsen for the fiscal fourth quarter ended Jan. 31.
Hayes Lemmerez shares fell 6 cents, or 15 percent, to 33 cents in late afternoon trading.
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