Update on ARC's stock price (as of market close Mar 6, 2009)

Well, this post is a yet another “brief” follow-up to previous posts about ARC’s stock price.

This afternoon, ARC’s stock price closed at $2.86 per share.

Once again, the only appropriate acronym for that is OMG!

At $2.86 per share, that price-per-share computes ARC’s “market cap” (total market value) to be around $131 million.

A market cap of around $131 million now values ARC at around:

- - - 18.6% of ARC’s 2008 Sales
- - - .975 (less than 1) x ARC’s 2008 EBITDA.
- - - 53.6% below ARC’s y/e 2008 Book Value

I am further stunned at this development, especially considering that ARC's stock price fell to $2.68 during the day.

Why is ARC's stock continuing its slide? A friend asked me that question this evening. My response was that stock (the price of a stock), like anything else you can buy, own and sell, goes up and down based on demand. As to ARC's stock, there are obviously more sellers right now than buyers. Motley Fool very recently said that ARC's stock is going to "bounce back". Morningstar Research still recommends ARC's stock (I think MSR still shows a $30.00 "fair value" rating for ARC's stock.) I'm too stupid a person to ever listen to investment research people or stock promoters. However, it does "feel" like ARC's stock is definitely "undervalued,"; this opinion simply my own and based on historical reprographics industry company values. And, to bring me back to earth, several business economists (I read the NY Times Business section on Sundays, great read) so much as said that "current times are unlike anything most of us have ever experienced", so I guess that means that prior history is now irrelevant!