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Posted On: 08/27/2017 10:37:19 PM
Post# of 127566
ACET Company is heavy in generics, a business under intense margin pressure and no relief in sight- it just gave 2018 Guidance that's 25% lower than the street expected.
ACET has much more debt than it has tangible assets
Company is counting on new generics, its biggest business to pull ahead but in just reported quarter gross margins in this segment fell to 19.1% from 31.7% in prior year.
The company has to be concerned that free cash flow can stay ahead of its debt payments in a deteriorating environment.
The share price closed Friday (first day after report) at essentially LOD.
I see more downside and went short Friday.
MG
http://stockcharts.com/h-sc/ui?s=ACET
ACET has much more debt than it has tangible assets
Company is counting on new generics, its biggest business to pull ahead but in just reported quarter gross margins in this segment fell to 19.1% from 31.7% in prior year.
The company has to be concerned that free cash flow can stay ahead of its debt payments in a deteriorating environment.
The share price closed Friday (first day after report) at essentially LOD.
I see more downside and went short Friday.
MG
http://stockcharts.com/h-sc/ui?s=ACET
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