Brian Acker, CA
AbitibiBowater Inv.
ABH-N
DON'T BUY
May 08, 2008
Told a caller a couple of months ago to “head for the hills” when it was at around $20 something. Has now dropped into the $9 range. His model price is $3.73, a -60% differential.
This is in a very brutal industry group. The stock is heading down. Could see it below $10 by the summer. If you do Buy, put a stop in at around the $10.50 level.
Possibly the biggest newsprint company in North America and it has been a terrible business. Costs have been going up and demand is dropping. Very speculative.