Bought a few more at $14.50 yesterday. This will either look smart, or really bad a year from now. Still, a dividend of 3.5% is nice assuming they keep paying it.
BlackRock, Inc. increased their position in RAVN from 971,719 to 2,058,124 shares and now owns 5.6% of the company. They have been doubling their holdings in R2K companies since the Sep. 30 report. AVD, MGRC, DORM, and others are ones I follow and have noticed.
It's also interesting that when Barron's did the last positive article (wrong) on Raven, we moved up about 10%. This time, nothing. Whether that is a comment on the market in general, Raven in particular, or Barron's previous wrong call, who knows.
You really need to do a google or yahoo search for "Penny Stock 101 org' and signup for their 100% free email newsletter. They consistently bring me winning trade ideas. I've made some quick double digit gains following their alerts. They have a new pick coming tomorrow. Signup now!
Not sure I have heard anyone put a number on the Loon balloons, but from this article:
If Project Loon moves forward, it could mean orders for tens of thousands of balloons.
I posted the complete article on the Investor Village site, but here is the start of the article.
Raven Industries: A Cheap Commodity Play That Can Rise 65%
Beaten-down Raven Industries, which makes tech-based equipment to boost crop yields, yields an enticing 3.5%.
Small industrial concern Raven Industries has been a casualty of the collapse in corn and oil prices.
Raven, a maker of farming equipment and industrial coverings for the oil and gas industry, makes about 80% of its revenue from the two businesses. In the last three years, its shares have plummeted 60% as demand for its products has dried up.
While the business environment remains difficult, Raven’s earnings could be nearing a bottom, helped by restructuring moves that the company has taken. Downside for the stock, too, looks limited. In the next few years, as Raven’s markets rebound, the shares could move sharply higher.
I'll keep this short and sweet...Google "Penny Stock 101 org' signup for their free newsletter and get their next trade alert. Come back and thank me tomorrow!
From the year end article talking about their previous recommendations:
One theme the column harped on is the value in high-quality industrials, whose shares have been hurt by their commodities exposure. We recommended Actuant (ATU), Valmont Industries (VMI), Clarcor (CLC), and Raven Industries (RAVN), and their prospects still look good.
Raven, a maker of farming equipment and industrial coverings for the oil-and-gas industry, was the subject of a June story. The stock has since dropped 21%, compared with the Russell’s 18% slide. At a recent $15.10, Raven could find its way higher in the next year or so, as its markets bottom. Earnings are expected to hit 49 cents a share in the fiscal year ending this month, before rebounding to 64 cents in fiscal 2017.
Free cash flow could rise, as well, as Raven cuts back on capital expenditures. It has net cash of nearly $1 a share, and has been buying in its stock. Raven also has optionality to supply Alphabet with hot-air balloons for its Project Loon.
Raven still sells at 24 times earnings unless you think the company's earning are going to turn around here, it wouldn't be surprising to see it go lower. i guess the next earnings report will give you a good idea if there is another leg down.
I agree with you, but considering the investment they have made over the years in AT, it would be very difficult to move into a completely different field.
I hope you are right. I wish nothing but the best for the company and its employees and shareholders.
Not fond of management that says (paraphrasing), "It looks bad but we are waiting for a turnaround in the overall economy or market." That's caretaker management, not leadership.
Other markets such as agriculture and energy will determine what kind of year is in store for companies such as Raven Industries Inc.
The manufacturer took hits from both sectors in the past year.
“Underneath it all, the business is just fine,” CEO Dan Rykhus said. “We’re still generating good profits. We’re still generating good cash flows. We’re confident in the business next year. We don’t expect to see a snap-back recovery by any means. There’s no reason to see oil prices coming back fast and no reason to believe corn and soybean commodity prices are going to come back real fast.”
The company has been working on developing products for when the market turns around and just brought on a new $13 million line in its engineered films division.
“It’s a really important expansion for us because all the material will go into our industrial segment, and that provides more diversification away from energy and agriculture and into a space that will give us a nicer mix, and that’s going tremendously,” Rykhus said.
He, too, has concerns about the future workforce. While the company reduced staff in 2015, hiring for vacant positions still is a struggle.
“It’s a big concern for us because we are going to start growing again, and there are a lot of companies in the midst of fighting the battle and getting more creative about how to attract talent.”
Even smaller amount, but an open market purchase anyhow. Gen Counsel & VP Corp Dev Stephanie Herseth Sandlin bought 500 shares at $15.76.
Certainly the market agrees with your sentiment. But, by the time it looks like a compelling buy, they share price "may" have moved quite a bit. I am leaning toward improved grain prices next year and that should improve the outlook for AT.