Why Shares of AEP Industries Dropped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of plastic filmmaker AEP Industries (NASDAQ: AEPI  ) fell 10% today after reporting earnings.

So what: Net sales increased 2% in the fourth quarter to $272.5 million but only because a 7% increase in prices offset a 4% decline in volume. The company swung from a profit of $6.9 million a year ago to a loss of $3.7 million last quarter.

Now what: Management said that even the price increases the company put in place couldn't cover higher costs in the quarter. To make matters worse, competition was high and that's why volumes were even lower in the quarter. That's enough to keep me out of the stock today and I'd like to see improvement in both growth and margins before jumping in.

A better stock to buy today
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2873835, ~/Articles/ArticleHandler.aspx, 7/28/2014 9:36:52 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 16,960.57 -123.23 0.00%
S&P 500 1,978.34 -9.64 0.00%
NASD 4,449.56 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

7/25/2014 3:59 PM
AEPI $40.46 Up +0.14 +0.00%
AEP Industries CAPS Rating: **

Advertisement