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American Greetings (AM) has been a solid trender to the upside. |
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Released on Tuesday, February 14, 2012, 3:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - American Greetings (NYSE:AM) is a pretty massive company with revenue in fiscal 2011 of $1.59 billion and net income of $87.0 million while trading at a market cap of around $581 million. One reason that it may not be receiving the valuation it deserves is due to having significant long-term debt and other liabilities, though total assets still exceed total liabilities by about 2 to 1.
AM is trading at a PE of less than 8, which we believe makes AM undervalued. Another reason for AM's low valuation is most likely the economy.
AM hit a 52-week low of $12.47 late last December after gapping lower and has since been trending higher to a current price of $15.18. AM has a 52-week high of $24.84. AM is not overbought and has broken through its 50-day moving average with its 200-day moving average above at $18.75.
It appears that AM is a cheap stock and could challenge its 200-day MA without significant effort. Keep your eyes peeled on American Greetings (AM) for a valentine's day stock play and seasonal holiday play for now and into the future.
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