FWIW - I will buy GNC shares possibly after they offically release their profit downgrade, on a 12 month view buying under $5.50 is cheap. The key issues they have this year are also not likely to impact on future years ie: - lack of use of ports, larger EC volumes will fix this issue - The Malt market is likely to recover in the 2nd half of this year - The rail usage will go up with expecter higher volumes in 10/11. - A new CEO will hopefully add some better direction to the company.
At the end of the day this company is a pure infrastructure play that is based on throughput which in turn relies on the East Coast Grain and Oilseed production. This is why their results are so easy to predict. 2010 not looking good, 2011 should be much better.
GNC Price at posting:
$5.83 Sentiment: None Disclosure: Not Held
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