Exposure to Chinese manufacturing is going to be very difficult (if not an outright death knell) for many small U.S. manufacturers. The Central Chinese Government is constricting liquidity, repositioning the market toward internal consumption. The Emerging Market Currency Crisis just now unfolding will further undermine Chinese exports rendering them too expensive to most nearby markets. Soon small Chinese manufacturers will begin hoarding their cash balances much like U.S. banks did in late 2008/early 2009. SMIT needs to exit China now IMO. Luckily, being a very small company, it has the advantage of being nimble and being able to move quickly. Much of what would be required is shutting down the local distribution network there and perhaps repositioning some assets and inventory. China is looking squarely in the face of a 2-4 year manufacturing slowdown. The same foreign currency crisis is going to impact both South America and to a lesser extent Latin America, rendering the tank monitoring business great difficulty attaining the scale it needs to be profitable. Argentina, Brazil and Venezeula will be the trigger points for the unfolding decline there, although Mexico could escape relatively less harmed. IMO SMIT needs to come to a stark realization that China is no longer an engine of growth, that it also does not have the scale to make Xact work, and needs to sell the company into stronger hands.
mode, per last night's PMI release. The Chinese manufacturing theme and tank measurement have supposedly been the potential growth drivers as the story for the company goes the past 5 years. Well, it's been five years of losing money on those themes. The CEO should salvage what he can from his open market stock purchases and Walter Pistor Brown should get out near break-even on its major investment in the company (adjusted for the risk-free time value of money in real terms/opportunity cost). In short, the company should be sold. There is absolutely no reason to remain public. Turnarounds do not take 5+ years. The alternative is to hold on to a "zombie stock" that wanders aimlessly, going nowhere like the walking dead.
dude, the market cap on this one has been under $10 million it seems like forever. And they never raise capital (either debt or equity) in the public market. There is zero reason for this to be a publicly traded company. Money spent on remaining public is like pouring water down a rathole in this case.
The entire product offering here sells at commodity-like prices, as if there were no proprietary innovation at all attached to them. The stock is a clear sell. Dead money and opportunity cost here.
I remember when this stock was fun. Gosh, I guess that was a long time ago. Then they bot the tank sensing biz and oh boy is that a dead end. tons of competition and not many customers to fight over. thus the margins for a commodity product.
no movement is share price for a decade. a decade forward it will probably still be at the same price. it is nothing more than a vehicle to assure the family triumvirate can sustain an upper middle class living up to and through retirement via compensation and salary.
The company's products in aggregate are being sold at roughly cash cost and have been for a very long time. The only apparent value in this company is the net working capital which is equal to the current stock price. To get an offer of an extra $1 per share to reach the $3.50 per share take out target, you would have to assume the fixed assets, customer lists, patented technology and business itself was worth another $3 million and I am not sure that is the case. They just cannot seem to sell anything at a profit.
in the most recent quarter, after the close on a Friday evening. What a joke, death by a thousand cuts here. No one making any money on this one. Even the executive officers making only an adequate living wage. What a waste of a professional career. Sell the entire company for $3.50 per share and be done with the nonsense. Nothing here of much worth other than keeping a small amount of people employed.