Sell: Aegion (AEGN)
From The Periscope Report
Updated from Wall Street’s Best Investments 783, July 20, 2016
We are downgrading Aegion (AEGN) to a SELL after the company made a deplorable announcement today. First, the company will incur a non-cash, pre-tax impairment charge of $85 million for Goodwill in the 3Q of 2017. Second, the company said it will spend $3 - $4 million in Australia and Denmark in order to save $2 - $3 million (you can do the math on that one!). Total restructuring costs in 2018 will be $12 - $15 million, much higher than originally anticipated. Third, the hurricanes are expected to impact 3Q operating results by approximately $5 million, or $0.10 per share. The stock went reeling after this bombshell, losing over 10%. Management has been telling us one thing for a year, and doing another. We don’t like deception; we don’t like three weak quarters in a row being explained by foreign affairs and hurricanes; and we don’t like excuses. Management has failed miserably to execute their growth plans and restructuring plans as they were explained to us. SELL all your shares.
Tom Byrne, The Periscope Report, t2byrne@gmail.com, 4025 Sunset Ridge Drive, Canyon Ferry Crossing, Helena, MT 59602-9799, 406-465-4663, October 3, 2017