Wednesday, May 4, 2011

Lexmark: Another Falling Knife

Six months ago, shares of Lexmark (LXK) fell from $48 to $38 in a single day, following the company's earnings release. The company was subsequently discussed on this site, and though the stock did seem undervalued, there remained a number of risks on the horizon. Last week, however, the stock fell big once again, this time from $38 to $32, as the company missed expectations and guided lower for the rest of the year. At this price, there appears to be a large margin of safety to help mitigate this company's operational risks.

The rest of this article is available at Seeking Alpha

Disclosure: Author has a long position in shares of LXK

1 comment:

stock dividend said...

Keep up the good work!

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