Q: Knowing that it was ancient history what may have caused the massive drop in DRX from 13.60 to .40 in 2002-04?
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5i Research Answer:
Following the 2002 recession, there was a massive slowdown in the structural steel industry. DRX lost $129M in 2003 and $59M in 2004. It repeatedly announced layoffs and restructuring to try to adapt to industry conditions. Numerous brokers dropped the stock, and its debt was becoming an issue as cash flow fell. Enterprise value fell to $51M before the business turned and revenue started to improve again.