I think it also goes to show how confident they are of having consistent work going forward and will be keeping the equipment busy.
It will def help the bottom line! Previously they were paying a "substantially" higher monthly rate for the equipment.
On March 31, 2014, PCA entered into four lease schedules (the “Schedules”) with Terex, and each Schedule has a term of 60 months. The total monthly lease payments under the Schedules amount to $107,673.77 (or $6,460,426.20 in the aggregate over the 60-month term). The equipment covered by these Schedules is presently rented by PCA and subsidiaries at an aggregate monthly rental substantially in excess of the lease payments required under the Schedules.
This should also help the bottom line because rather than depreciating equipment over time rent/leased equipment they take 100% write off of taxes.
One of my considerations besides my overall sentiment about the company is the Master Lease Agreement for which they filed an 8K:
On March 31, 2014, PCA entered into four lease schedules (the “Schedules”) with Terex, and each Schedule has a term of 60 months. The total monthly lease payments under the Schedules amount to $107,673.77 (or $6,460,426.20 in the aggregate over the 60-month term).
This is very bullish.
Conversely, if the company announced a follow up contract even bigger than the initial STEC project, the shorts would have been creamed, and the shareholders would have been rewarded.
Sarah Tyler may very well be a pseudonym I researched that name and couldn't find anything. If she really is a 28 year old gal, she is wise beyond her years.
What's important to know is the short interest spiked to about 1.2 million shares+ on/about March 2013 when the article hit. It had the effect it had, because it was right. The shorts pounced! GV was limit down day after day after day.....
Some smart money shorts made an absolute killing, while many were left holding the bag.
Look the short interest up on the Nasdaq website and see for yourself.
Forget the days this traded at 50 cents, those days are long gone and the market doesnt care where a stock's been, all it cares about is where its going.
The Backlog dropped off a cliff, (down 80%) (after Bakerfield to Bighill) after huge Bonuses handed out to CEO and John Davis/SEP/Western Division et al.
Seeking Alpha article by Sarah Tyler nailed it. Find it and read it.
That's the reason this isn't a $5 stock. Mgmt needs to not allow that kind of bloodbath to shareholders ever to happen again. I suspect a lot of people here were hurt by that. Most people underwater on a stock don't talk about it. They hope they get out even. However, the future looks excellent.
I think we will see this stock go past the 5.68 high at some point, hopefully sooner than later. Life's time clock is clicking away....we are all getting older.
CapX2020 is a joint initiative of 11 transmission-owning utilities in Minnesota and the surrounding region to upgrade and expand the electric transmission grid to ensure continued reliable and affordable service. The CapX2020 Group 1 projects include three proposed 345 kV transmission lines and a proposed 230 kV line. The projects are projected to cost nearly $2 billion and cover a distance of more than 700 miles. The new infrastructure will provide a foundation for the region's projected electric growth as well as connect into renewable energy sources in southern and western Minnesota and the Dakotas. Along with Great River Energy and Xcel Energy, utilities that expect to participate in one or more of the CapX2020 projects are: Central Minnesota Municipal Power Agency, Dairyland Power Cooperative, Minnesota Power, Minnkota Power Cooperative, Missouri River Energy Services, Otter Tail Power Company, Rochester Public Utilities, Southern Minnesota Municipal Power Agency and WPPI Energy.
Where's GV PCA SEP???
I remember seeing MYR Group as part of but this is all I found so far:
MYR Group and Quanta Services Selected as Construction Alliance Partners for CapX2020 Transmission Projects
copy and paste the header into google
Electric Transmission Texas, LLC (ETT) is proposing to build approximately 400 miles of 345-kV transmission lines as part of an extensive effort to deliver renewable energy to electric customers in Texas. These projects are a portion of a new transmission network that will facilitate the development of wind generation in areas called Competitive Renewable Energy Zones, or CREZ.
Following a mandate from the Texas Legislature in 2005, the Public Utility Commission of Texas (PUC) directed the Electric Reliability Council of Texas (ERCOT) to identify areas in the state that are best suited for wind generation development. A total of five areas in West Texas and the Panhandle were designated by the PUC as CREZ.
Once the CREZ were defined, ERCOT developed several transmission plans to deliver the CREZ wind generation to customers. The PUC selected the plan that was determined to be the most beneficial and cost-effective to deliver this renewable energy to customers. The overall plan includes approximately 2,400 miles of new 345-kV transmission lines and delivers about 18,500 megawatts of wind energy.
Wheres GV? Wheres PCA SEP John White???
OSHA STRATEGIC PARTNERSHIP AGREEMENT
THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION
THE ELECTRICAL TRANSMISSION AND DISTRIBUTION CONSTRUCTION CONTRACTORS, THE IBEW, AND TRADE ASSOCIATIONS
I see the following companies:
MYR Group MYRG
Michels Construction (Private)
Elliott Electrical Excellence (Small sole propriator)
Henkels & McCoy (Private)
MDU Construction Services Group MDU
These are NOT just big Mid-Cap companies!
I get that we were non-union, but C&C is union and John White is the union guy! Come on and get with it GV!
Texas Transmission also has an industry alliance....I will locate information on it.
The Real Estate has been improving since it bottomed in 2007-2008, but Bayswater's was stuck with the condominiums which became unsold at Pineapple House when the banks collapsed and took the real estate market with it. The company did the right thing by honkering down and selling its inventory as the market conditions permitted. For years Real Estate was a dirty word, and banks wouldn't even consider lending for real estate construction with massive inventory of foreclosures. Q1 will be a good indicator of how well Bayswater is doing, and I suspect it will be a pleasant surprise. There were many townhomes on the website that are no longer there-I presume they are sold.
Hey nice find!! Wonder how the current inventory compares to recent months? I didn't even know this segment was up & running again! This was a big contributor to GV profits before real estate went bust in 2007. With real estate prices surging again in many areas of the country, was wondering when GV might benefit. Maybe now!
Still expecting the growing electrical construction business to drive the company, but the real estate division could add to revenues & earnings this year. Hopefully we'll learn more in the Q1 report next month. I think the stock is a steal at $2.07.
Ha yeah PLEASE list the stocks that trade at a fraction of book value. There's not many cheaper than GV imo. I think earnings this year will surprise everyone to the upside.
companies that make money trading at 20-30% of book? With an S&P 1860+ Nasdaq over 4k and dow at 16,400+ Are you serous?
Bailed out banks may be slightly less than book but nowhere near what you're talking about.
The other metrics are all in-line for this industry: price/book 1.71; ev/ebitda is low 4.88; ev/revs .72 low.
If you honestly ' expect much lower than $2 very soon' you should either short it, or quit the brain-damaging drugs you must be taking.
"the equity will continue much lower" ?? I don't get it, shareholder's equity has been rising, and should continue to do so as long as they have positive earnings.
I do see your point, as I was only figuring a return on the price a buyer of GV would pay above book value, with no return on the equity already there.
Yeah, Q1 will be the 1st Q to have C&C revenues & debts,.. we'll see soon
Have a nice week.
I think your logic about book value has zero value. The cash flow the business could make going forward with some logic on past performance is how most investors value the equity. There are lots of businesses that trade below book value because they have expectations of lower profits or poor business. There can be strong value if a company trades at 20-30% of book value but that's not the case here.
I think you're correct expecting $.20-30, although I would expect lower profits but that's just our own opinions. I don't think they will have losses but profits will not meet this boards overall expectation. I think people here have such high unrealistic expectations that the equity will continue much lower. If gv doesn't get a big contract I would expect much lower than $2 very soon. The first quarter is going to tell the story. Have a nice day.
There were a bunch of attached townhouses which presumably have sold. Its difficult to know what was sold without keeping records. It would be helpful if the website didn't remove the pictures & prices but rather put 'Sold' on the picture so one could get an idea of how much is sold per quarter. I will not speculate since first quarter is closed and I would simply be guessing.
There is a nice chart in the last 10K ( pg. 11) which shows GV's progress from 2009 - 13. It shows that GV doubled stockholder's equity in the last 2 yrs. from 15.3 to 31.1 million. Very impressive.
Also, This equals $1.22 per share book value. If you subtract that from Thursday's close, you get .85 cents.. which can be viewed as the the premium over book value for their forward earning potential.
So this is what a company that made .15 cents a share last year is trading for, .85 cents? I would think that if I could invest .85 cents and get a .15 cent return (17.6%) in one year, that would be a pretty good deal. Seems like GV is now undervalued in the market by at least a dollar per share.
I try to stay conservative with my estimates, but if GV can do .20 -.30 cents this year, I think GV at $4 + would be a fair value. The old timers here know that GV has been historically undervalued, so that has to be considered as well. And maybe for good reason. GV seems to have dropped the ball the last share price surge cycle in 2006 by not maintaining momentum, probably due to collapse of the property value bubble. They made statements to the effect they were glad not to be caught in it by being overextended when that happened.
But they are entering a new phase in their history now. They just need to keep up the momentum of their growth.