On paper, and I don't fully trust it, the one stock I own which seems a bargain is TLF. If they don't have good sales in Nov and Dec, they will have too much inventory, but in their field inventory is not too subject to markdowns, especially the leather itself.
Steve, I tend to favor lower PE stocks, although they are getting harder to find. If MTX meets its Dec target without a rise in price, and if not too much of earnings come from commodity minerals, I would be interested.
Hey Algo. Have you looked at MTX, the company that bought ACO? I always thought the ACO business was good, but never liked the new management that took over after Washow left. MTX shares have done quite well since the takeover and they seem to be integrating the ACO business fairly quickly. I am just starting to look at MTX now. Hard to know where their earnings will settle out over the next year. Hate to buy anything at 52 week highs, but sometimes it works OK.
Steve, I like Seeking Alpha. DDuane (Practical Stock Investing) is still the blogger I respect the most and as far as I can see, he is doing it just as a public service.
There was a small Seeking Alpha article today on the sale. Here is an excerpt. Fairly positive.
The sale will negatively impact EPS in the short term, but should favor better focus and higher profitability over the long term. In fact, as the sale will not bring in significant profits, I believe RFL was probably sold because the company realized that the segment's operations lacked the necessary scale to compete effectively. Hence, I consider the transaction to be another step forward in the company's portfolio optimization strategy which I had already highlighted in my first article on SLI. Over the past years, the company has significantly improved its underlying profitability and the planned new factory in China will probably lead to further enhanced profit margins and facilitate contract wins and revenue growth. All in all, I continue to consider SLI a well managed company that has a good chance to deliver positive surprises in the near future, as the company continues to streamline its operations, in the attempt to close the margin gap to its peers. Hence, SLI seems to be a decent buy at its current price of about $41/share, but I would wait for another pullback before building a major position.
Seems to indicate management is interested in maximizing value.
For what they are worth, I did the following calculations:
9 month segment earnings: 5203 + 9676 + 5146+ 1250 = 21275
rfl/total = 1250/21275 = 0.06
sale price/market cap: 20/167 = 0.12
In other words, RFT accounted for 6% of 9 month segment earnings, but sale price is 12% of SLI market cap.
Now SLI would be worth more without environmental liabilities, and buyer of RFL did not assume any.
For 9 months, eps from continuing ops is 3.3% higher than total eps. If we increase market cap by 4% in the above, we get 20/(167*1.04) = .115 or 11.5%
This is all very crude and doesn't consider future potential.
I guess most of these thinly traded small caps are more volatile than average, but this seems worse than average. You could make a case that perhaps the run from $30 to $50 was overdone (who knows) and now with the light trading volume, share holders are just nervous about whether the results justified the move. Still, those 5% to 10% moves daily are crazy. Some might be tempted to trade the moves, but the volume and bid/ask spreads probably make that impractical for anyone wanting to do any trades of size.
They go to some trouble in 10-Q to document details of operations, and they also provide guidance in the earnings release, so you would think they would take the trouble to issue earnings after the market closes or before it opens.
In addition to taxes, there was a $346,000 charge "primarily due to the recognition of a non-cash inventory purchase accounting adjustment, acquisition costs, and integration costs that were recognized during the third quarter of 2014 associated with the Dynetic Acquisition". This comes to about .05eps I figure.
I was a little unclear about the taxes. Some of it may have been due to inability to use R&D tax credits earned in other quarters, but I am not sure. Hopefully, tax rate will be a little lower in 4th qtr.
Just noticed the report. This is the only company I follow that releases the earnings during the trading day. The report looks like it came in about as they forecasted.
Lots of things getting hit right now. I don't own it, but follow Spansion (CODE) and it does embedded semi conductor products. Stock has gone from 23 to 16 in a week or so. Hoping Intel gives a good report and forecast tomorrow. The other Steel Partners stocks seem to be holding up OK. Well, my ATNY maybe not so good, but AVNW and SXCL not too bad.
Incidentally, I know sli is not semiconductors, but apparently Microchip warning was about general industry use of semiconductors, so might correlate with power supply.
I couldn't find anything. Stock has run up since last earnings report, and semi-conductors getting hit, so I am hoping there is no real reason other than profit taking. My rationale would have applied Friday, so not very convincing.
Hard to move lots of shares for sure, but Gabelli surely has a pretty good profit is his position. Still wonder if Warren and SP has some kind of master plan for some of his companies. SLI, AVNW, SXCL, and ATNY might just fit together somehow. SP is over 11% on AVNW as of this week. I don't have any of it, but do have a fair position in ATNY. SP has 20%+ of it and another guy has 40% of it, so something should happen. At least that's my bet. Ha.
Well, it would be hard to sell large volumes of shares at once. I have to assume SLI is not one of his favored holdings, unless he is having to respond to fund outflows.