I'm old. Seen this plenty of times over the last forty years. Don't try to rationalise it as it won't work. Markets always overshoot in both directions. There is plenty of opportunities out there at present for companies on what would be considered ridiculously low P/E's by traditional standards.
The key here is utilisation. If they got it up, money to be made. If it has fallen look out. Personally I would find it hard to fathom it has fallen in the current environment however as a long term SWK holder I would not trust anything that part of the business promoted. Sure input costs should be up as well and I am not sure on their ability to pass on. Hopefully some merger synergies have been realised as well.
At these levels my take is far more chance of upside than down. Only a few weeks and all will be revealed.
DDH Price at posting:
62.5¢ Sentiment: Buy Disclosure: Held
