AbitibiBowater Inc. (ABH.TO) Buy, Sell or Hold

AbitibiBowater Inc. (ABH.TO)

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2 watching

DON'T BUY

He owns but thinks he may have made a huge error in holding it. Highly speculative. Huge debt load. Have some debt they have to deal with by the end of this month.

DON'T BUY

Huge debt. A lottery ticket. Not for the faint of heart.

HOLD

Had averaged down on this one and he was wrong. Would not Buy, as their loss is just too big. He has it as a Hold. Losing $250 million a quarter.

DON'T BUY

He has been short this stock on and off since he started his fund. Although he is not short at this moment, it is still in the short camp. Earnings continue to go down because newsprint demand is going down. The slowing economy further accelerates its decline. Strong Cdn$ increases their cost structure.

DON'T BUY

Now closing Canadian plants because of high costs and keeping US plants. Forest products industry has been much more disciplined about bringing on new capacity and closing low capacity. Stock price has been abysmal and some smart investors have been buying lots. If you believe that every commodity will have its day in the sun, wait for it to start moving.

COMMENT

All newsprint players have been decimated, specifically those in Canada whose costs are in Cdn$’s. Has BV of about $25 with a terrible balance sheet. If a company can pay its banks when the commodities are low they have massive leverage when commodities improve. Newsprint inventory is down 25%, largest decline in 30 years. It could earn $8 a share and at $17, in 4 years you could be paying 2X earnings. Needs to do more work, but it fascinates him.

COMMENT

Trying to turn a corner. Recently announced some closings and cost cutting. The synergies on the merger are starting to build up. Hard to say if it is time to buy the stock yet because the environment is so bad.

SELL

All the newspaper companies are hitting 52-week lows and are getting killed by Google. Amalgamation of Abitibi and Bowater were 2 very weak businesses. His model price is $4.31US. Looks like they might lose a mean estimate of $5 for 07 and another $5 for Dec 08..

HOLD

Owns and has "got our brains blown out" Just moved it from a buy to a hold.

DON'T BUY

Looking for the continued merger with Bowater (BOW-N). Stock has been hit hard lately. There will be synergies of about $250 million, but he doesn't like the outlook for the commodities. Not a fan of the sector.

DON'T BUY

In a bad industry. Demand for newsprint is generally in decline. Global competition is strong. They are about to merge with Bowater (BOW-N), which will give them almost 50% share of the newsprint business. This merger is the only opportunity they have to

DON'T BUY

Would avoid this stock at these levels. Have extremely high debt. Outlook for newsprint is not good and consumption has been declining in North America on a regular basis. Cdn$ is definitely hurting them.

HOLD

This has had a huge corrective period since last February, so it might be into a bottom here. The MACD is showing a little bit of positive divergence at its low. Don't put new money in, but Hold.

SELL

Trying to merge with Bowater (BOW-N), but both companies have operating losses.

DON'T BUY

Too much debt. Hard to understand how the company operates going forward.

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AbitibiBowater Inc. (ABH.TO) Frequently Asked Questions

What is AbitibiBowater Inc. stock symbol?

AbitibiBowater Inc. is a OTC stock, trading under the symbol ABH.TO (previously ABH-T on Stockchase) on the undefined (undefined). It is usually referred to as or ABH.TO

Is AbitibiBowater Inc. a buy or a sell?

In the last year, no analyst issued a Buy, Sell, or Hold rating on ABH.TO (previously ABH-T on Stockchase) on Stockchase. Read the latest expert commentary for AbitibiBowater Inc..

Is AbitibiBowater Inc. a good investment or a top pick?

AbitibiBowater Inc. was recommended as a Top Pick by Bill Harris, CFA on 2007-06-25. Read the latest stock experts ratings for AbitibiBowater Inc..

Why is AbitibiBowater Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for AbitibiBowater Inc..

Is AbitibiBowater Inc. worth watching?

AbitibiBowater Inc. is covered by Stockchase experts and is worth watching.

Most Recent Experts

Joe Terranova

Virtus Investment Partners

Stephen Weiss, Founder, Short Hills Capital Partners

Short Hills Capital Partners

Rob Sechan, Managing Partner, New Edge Capital

New Edge Capital

Gordon Reid

GoodReid Investment Counsel

Jim Cramer - Mad Money

CNBC

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AbitibiBowater Inc. (ABH.TO)