Replies to post #7825 on AbitibiBowater, Inc. (fka ABWTQ)

[stju1979]

Can you say way way undervalued? lol

[THE GREEN EAGLE]

posted by
RedStick
HSM Addict
Rank: Junior Analyst




Join Date: Feb 2009
Posts: 1,395
Even if considered a lotto play (which I think it is much more than), the upside here should not be overlooked. On top of that, the fundamentals are strengthening:

Cash:

Q109: 181M
Q209: 479M

(So the company's cash position more than doubled in the second quarter. But it gets better ... )

Total Debt:

Q109: 6.15B
Q209: 1.34B

(So the company's cash per share has gone from roughly 3 cents per share in Q1 to ROUGHLY 29 CENTS PER SHARE IN Q2. SO WITH A PPS of .17, FOR EVERY 17 CENTS YOU INVEST, YOU'RE EFFECTIVELY GETTING A 12 CENT REBATE.)

MEANING EITHER:

a.) YOU BUY THE STOCK FOR 5 CENTS

OR

b.) YOU BUY A 29 CENT STOCK FOR 17 CENTS

WHICHEVER WAY YOU PREFER TO LOOK AT IT!!!
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