AXL - Opportunity?
Rumor broke late Friday after market close on a possible buyout of AXL. Most likely by GM since that is who spun off AXL back in about 1994. GM remains one of AXL’s biggest customers.
The reason this might be an opportunity is because of AXL’s current valuation, stupid low PS, stupid low Ev/ebitda, great cash flow of over $2.50 per share per year. Stock trades at $7.
IF there is no news tomorrow morning, or the next couple days it might be a great time to buy. Where there is smoke there is fire and the sector has been consolidating. I’ve been adding shares for the last 18 months and trading along the way. I think it easily commands $15 to $25 right now.