Avoid This Hot Stock

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Company Polypore International (NYSE: PPO  )
Submitted by Jeffrey2012
Member Rating 80.61
Submitted on 8/7/2011
Stock Price at Underperform Recommendation $63.46
Polypore International Profile
Star Rating (out of 5) ***
Headquarters Charlotte, N.C.
Industry Industrial goods
Market Cap $2.62 billion
Industry Peers Pall (NYSE: PLL  )
Advanced Battery Technologies (Nasdaq: ABAT  )
A123 (Nasdaq: AONE  )

Sources: Capital IQ (a division of Standard & Poor's), Yahoo! Finance, and Motley Fool CAPS.

This week's pitch:
The company was priced for perfection and unfortunately way too many speculators were still in the stock because of the belief that the business was running on all cylinders was going to continue this for the forseeable future.

However, a good part of their business is actually internationally based in Europe and their distress there is likely to affect [Polypore] going forward.

Another reason why their stock wont be going anywhere for at least the next quarter or two is due to the fact that they have constrained production because of a factory that is not open yet. So their financials will most likely be at the same level with the very real risk of poorer performance going forward.

Also, it is a private equity pig. The company is also loaded to the hilt with debt currently at around 712 million. The very real risk of interest rate costs going forward for over leveraged companies like this will be a serious possibility adding millions more to costs going forward.

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The Motley Fool is investors writing for investors. Dan Dzombak did not have a position in any of the companies mentioned in this article. Pitches must be compelling, substantive, and made in the past 30 days. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (3) | Recommend This Article (9)

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  • Report this Comment On August 12, 2011, at 7:47 PM, pm3d wrote:

    Looks like ABAT is just another LEXG. If you do a little searching you'll find these boys are filing false reports. Naw really paw, can we go to town? LOL

    This ABAT has law suites in the works as the results of these reports and LEXG will not be far behind. These guys think they get away with this but it does eventually catch up. The looser in this is the long term investors thinking something good will happen until the friday bailout these guys do to fill their pockets. When you see companies like ABAT with only 4 employees sitting in a suite in NY and no others and LEXG with only 1 employee who is LISTED in Florida and now in Arizona, it's not rocket science that these guys are nothing buy good old days scammers. I feel for the inexperience investor. If your going to invest into lithium, pick a company with backbone. A solid staff of employees is one and the other is their backlog. Good luck and may your investments be prosperous.

  • Report this Comment On August 15, 2011, at 8:41 AM, jrsept1 wrote:

    what a way to try and make a buck guy. You make your folks proud.

  • Report this Comment On August 20, 2011, at 9:20 AM, jrmart wrote:

    Why are they building another factory? Why is HP selling the PC, smartphone and pad business? Why is Dell forecasting weak PC sales? Why have PC sales fallen so much? I talked about all of these things before and no one listened. Wake up investors.

    Its all about the IPAD!

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