Sell
Schweitzer-Mauduit (SWM)
from Upside, recommended at $37 in the December 5, 2012 Daily Alert and in Investment Digest issue 732.
Schweitzer-Mauduit ($61; SWM) is being downgraded to Sell. The stock earns middling Quadrix scores for Momentum (51), Value (57) and Earnings Estimates (58). Moreover, shares have rallied nearly 60% this year and seem expensive. At 16 times trailing earnings, the stock trades well above its five-year average P/E of 12 and above the 10-year norm of 15. While the company has delivered decent results in recent quarters, the prudent move is to lock up gains ahead of the September-quarter earnings report, due tomorrow after the market close. Schweitzer was initiated as a Buy at $35.48 in November 2012 and upgraded to a Best Buy at $37.81 later that month.
Richard J. Moroney, Upside, www.upsidestocks.com, 800-233-5922, November 5, 2013