LexMark: Value or Value Trap?
I read the news today, oh boy!
LEXINGTON, Ky., July 12, 2012, Today LexMark announced that second quarter 2012 financial results will be lower than expected. (Editor: Read analysts need to cover their asses!)
No conference call will be held in conjunction with this revised financial outlook and the company will have no further comment on this until its upcoming second quarter earnings release.
Analyst Downgrades………..will be announced. (Editor: The horse has left the barn).
5 PM update:
(LXK -16.3%) closes at multi-year lows thanks to an ugly Q2 warning. Goldman (Sell) is taking a hammer to its 2013 and 2014 estimates, declaring the headwinds to Lexmark’s high-margin printing supplies business to be worse than feared. Though no full-year guidance revision was provided, Brean Murray thinks 2012 EPS could be around $4, compared with prior guidance of $4.70-$4.90 – that still gives Lexmark a forward P/E of just 5. HPQ -1.9%. XRX -1.8%.
The company will be hosting a conference call with securities analysts on Tuesday, July 24, 2012 at 8:30 a.m. (EDT). A live broadcast and a complete replay of this call can be accessed from Lexmark’s investor relations website at http://investor.lexmark.com .
This Post is to establish a basis for a case study in the future
This post is NOT a recommendation to do what I do (buy LXK today at $20.71) because you may be doing this:http://www.youtube.com/watch?v=go9uekKOcKM.
and here is why I might have a reason to buy: LXK_VL_July 6 12.
In a year or so I can refer back to this dated post. I want to be on record to improve the learning experience and build the case study. Next will the upcoming earnings report in late July. The history, valuation, financial strength, declining business can be discussed later, but for now, this is an attempt to take advantage of Mr. Market. Not everything works out, but we make our way.
Remember to be careful when fools rush in………….Better, perhaps, to follow them to the heart of the American Dream:http://www.youtube.com/watch?v=u_9tZ3aPCFo&feature=relmfu