Daily Stock Analysis: Acme United

TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

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Acme United Corp has the ticker symbol ACU. This is my very first report on Acme for my Viking portfolio. However, I have reported on and selected ACU  for one of my previous seven portfolios.

Acme United Corp is a supplier of innovative first aid and medical products and cutting technology to the school, home, office, hardware, sporting goods, and industrial markets.

Its principal products sold across all segments are First aid kits, and Medical products, Scissors, Shears, Knives, Rulers, Pencil sharpeners, and Sharpening tools.

The company sells its products primarily to mass market and e-commerce retailers, industrial distributors, wholesale, contract, and retail stationery distributors, office supply superstores, sporting goods stores, and hardware chains.

Its operations span the United States, Canada, Europe, and Asia.

The company was formerly known as Acme Shear Company and changed its name to Acme United Corporation in 1971.

Acme United Corporation was founded in 1867 and is based in Shelton, Connecticut.

Three key data points gauge

Acme United Corporation:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

ACU Price

Acme’s price per share was $23.71 at Wednesday’s market close. However, in the past year, Acme’s share price fell by $14.46 or about 38%.

If Acme’s stock trades in the range of $16.00 to $66.00 this next year, it's recent $23.71 per share price might reach $24.75 by next year. My upside increase estimate of $1.04 is in line quirk the ten-year average annual price gains for ACU for the last ten years.

ACU Dividends

Acme’s most recently declared a quarterly dividend of $0.14 per share equals $0.56 annually and casts a yield of 2.36%.

ACU Returns

Adding the $0.56 annual ACU dividend to my one-year price upside estimate of $1.04 shows a $1.60 potential gross gain per share.

At Wednesday’s $24.75 closing price, a little under $1000 would buy 40 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us $0.25 per share.

Subtracting that maybe $0.25 brokerage cost from my estimated $1.60 gross gain per share results in a net gain of $1.35 X 40 shares = $54.00 for a 5.4% net gain including a 2.36% annual yield.

In a year our $1K investment in shares of Acme United Corporation would generate $23.60 in cash dividends. Of course, a single share of ACU stock at Tuesday's $23.71 share price is $0.11 more than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is NOT quite a good time to buy ACU shares based on their dividends for the years 2022-23. The dividend from $1K invested is $0.11 less than ACU’s single share price. Consider yourself alerted. Wait for Acme United Corporation's share price to drop below $23.60.

All of the estimates above are speculation based on the past history of Acme United Corporation. Only time and money invested in this stock will determine its market value.

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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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