American Axle & Manufacturing Holdings Inc Stock Review

Overall 4.00 of 5 (by 1 user)

StockSwami
Woodstock, GA

Beaten down stock in position for nice rebound

an aggressive investor

SEP

2008

     American Axle & Manufacturing Holdings, Inc., engages in the manufacture, engineering, design, and validation of driveline and drivetrain systems, and chassis modules for automotive industry in the United States. The company's driveline and drivetrain systems include components that transfer power from the transmission and deliver it to the drive wheels. These products comprise axles, chassis modules, driveshafts, power transfer units, transfer cases, chassis and steering components, driving heads, crankshafts, transmission parts, and metal-formed products. It offers these products for light trucks, sport utility vehicles, passenger cars, and crossover vehicles.
     This company's stock price has been beaten down by the state of the economy and continued short selling. The stock price has been over $27.00 in the past 52 week period and was over $22.00 as late as May. There are 54.37 million shares outstanding and the float is 52.5 million. There are 13.44 million shares short. Institutions and mutual funds hold 98% of the outstanding and over 131% of the float. Over 26% of the float is shorted at this time.
     It looks as though the stock price has bottomed around the $5 area. The stock price rebounded to around the $8 area in early September before the state of the economy and the overall drop in the market has brought the price back to the $5 area again. There is no reason the stock price cannot rebound to the $7.50 area in the next three or four months. That would be a 50% gain. As we have seen with some of the larger companies in the country, there is no company safe from the bath the overall market is in. Still I think the $5 area presents a nice opportunity here.