|The earnings announcement looks pretty good overall. AVT bought back 1.1 million shares at an average cost of around $9/share, so obviously they feel the stock is undervalued at the current price of $6. They have no debt and $85 million in cash on the balance sheet, so another buyback is certainly a possibility. The $85 million represents almost $3/share in cash, so at $6/share the stock certainly seems cheap for a company that is making a pretty good profit in spite of a slowdown in their business. |
The new CEO stated, "Although the dynamics of the market remain challenging, we continue to believe that we have a sound business model and ongoing market advantages in the areas of AVT products, services and distribution." I interpret this to mean that AVT is in a temporary slowdown at the moment, but the long term outlook is fine. We should get more details in the replay of the conference call.