Although no news was announced, Acme United’s (ACU – $7.17) stock price was a real rollercoaster this week. From Monday until Thursday, the stock declined, along with the rest of the market, on small volumes of a few thousand shares. (See 3-month chart on the left) On Friday however, the stock traded 56,500 shares and shot up by more than 17% to close at $7.17.
Investors realized what a bargain this stock had become. When it closed at $6.10 on Thursday, it had a 4.92 P/E and a 0.96 price to book!
Additionally, something we must not forget is that the Company is authorized to buy back 150,000 shares of its own stock, which is almost 4.5% of all outstanding shares. With these prices it’s likely they will start buying back some shares.
Our first audio interview with Mr. Johnsen, CEO of Acme United, dates back to November 2008. So we figured it’s time to do a follow-up interview with him to ask about the Company’s current condition and outlook.
Acme United is not a Company that is going to disappear all of a sudden. This is a solid, profitable Company that produced record results in fiscal year 2008 and I believe the Company will continue to perform very well.
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