Central tendency on share price remains $10, like it has for a couple years. That level has a stronger pull than Magnetic North. Since the mid-April high of $14+ per share there has been a clear descending channel in place marked by lower recovery highs and lower lows. Stochastics are also reading overbought near term. See stock price hemmed in around the $10 per share level for a few years. A likely Euro decline well below $1.00 parity presents a significant headwind the next two years. I am forecasting a Euro rate of $0.70-$0.75 to the U.S. dollar before a bottom is reached. That could be tough on a company deriving half or more of its sales outside the U.S., not to mention one that also still has no CFO in place to address the issue.
small cap value has been out of favor for awhile, pretty frustrating, but the market will come back to it at some point.
At least something in the sector has been working. Better off sticking with the big players. Anything under $750 million market capitalization is just asking for trouble, illiquidity and inevitable whipsaw action. It's a good way to lose all your money.
There is no good business model for the company as a standalone entity. There is simply too much volatility and uncertainty in the business. It needs to be a small division within a much larger company.
PRCP habitually misses on quarterly earnings, they surreptitiously omit the dividend, they have an executive flight problem (only one executive remains), they have weakened the Balance Sheet, they have recorded negative cash flow from operations through the first nine months of fiscal 2015, they have no visibility in their base business beyond the quarter they happen to be in, the new products and acquisitions are imponderables for at least a few more quarters, Helix technology may be revolutionary or at least evolutionary but has not benefitted the P&L or cash flow statement despite being touted for years, the member Board of Directors are nearly all in their 70s. Bottom line, the company is being under managed by a group of old men and one executive. Be careful. They seem not to give a wit about either their shareholders (based on the recent lack of disclosure) or the stock price (based on a 33% decline in two months). They seem complacent and content, or at least indifferent. The institutional holders of the stock are equally complacent and indifferent to recent developments. It's not like you have Icahn or Ackman or Cooperman in your corner here pushing for change.
Given a 30% share price decline in less than two months they should probably comment on that basis alone. At a minimum there should be something said about the regular annual dividend. Saying nothing is almost inexplicable. The stock is well into bear market territory and they are in hiding. That is not a good sign.
That is a thing isn't it for any public company? Anything that might cause the stock price to move. In other words, if they are aware of something that might cause the stock price to move, they cannot sit on it, leave it on a desk, mull it over, figure out how to present it. The stock has fallen from $14.21 on April 15 to $9.99 today in only seven weeks w/no news. Hmmm.
It was clear following the last annual shareholder meeting they had enough votes to oust the Board, remove the poison pill, and force sale of the company. Instead they have failed to act. And so they can sit back and watch today as Cognex sells its comparably sized continuous in-line surface measurement and inspection system for about 3X sales. What remains here is a confused mess of delays, a missed dividend payment, executive resignations, blown quarterly results, and throwing of spaghetti agains the wall to see what sticks. Helix, yeah right, Helix.
Great technology, but apparently no one that knows how to run a company or what Wall Street is looking for. Somebody out there has to specialize in under-managed situations that have great technology but little else. Gotta be some PE firm's bailiwick.
Yeah, only about three weeks left in the fiscal year. Probably not enough time to declare a dividend, set an ex-date and payable date by June 30. Figured the co. would have said something though---in the interest of transparency or just common courtesy to their shareholder/owners. That's what well run companies do. Ma or Pa Jones shareholder in Dubuque, Iowa may not be able to read the tea leaves or figure it out, and they shouldn't have to. Companies should be forthright w/their owners. Perhaps the co. didn't want to give the covering analysts yet another negative item in print w/which to have to respond.
Think everyone's figured out there is no dividend this year. If they didn't squander all that money for executive search or overpay for the acquisition, or even if they had earned 15 cents per share, they probably could have paid one. Fiscal 2015 is a minor disaster in every way, including all but one executive leaving the company. Hopefully fiscal 2016 will be better and they can re-institute the dividend. They can't seem to control either their business or their own company internals. It's a complete clusterf&#@.
maybe they should take out and service $10 million of debt at 3.5% (the going rate of prime +.25%) for four years and use the money to buy back about 10% of the outstanding common shares. The believe they are undervalued relative to their peers. They believe the acquisitions will be earnings contributory by the end of fiscal 2016 in about a year. Why not put some money where their mouth is?
That seems a little too severe. You would need to see something like another key employee (CEO, CTO, Controller/stand-in CFO proxy) resign together w/a blown quarter---although that did just happen last quarter. Still, it would take something of that magnitude. Of course acquisitions always hold the potential for a negative surprise as this company is well aware historically given its former CBU unit and Forest Products operations. Leaving investors hanging re: the annual dividend is a big mistake. This company has limited visibility as it is, the BOD is already on the thinnest of ice, and credibility has taken a decent hit over the last couple years.. Transparency on the dividend is paramount as that is something the company can control. Apparently they don't care. I'm not sure they would really care if the stock even hit the price you suggest. I'm reasonably sure most of them would be history at the company if that happens. Institutional holders need to speak up and are hopefully doing that behind the scenes and not acting like Reek in GOT.
One has to wonder if this was not a Bear trap... why PRCP yesterday ? Stock is holding up today and one has to wonder if it was just a trick to get retail to sell...
Out of thousands of stocks on all the U.S. exchanges, ZACKS picked this one as their "Bear the Day" idea yesterday. Picking a company few investors have probably ever even heard of out of thousands and thousands as the best bet to lose value is damning. Clearly in the running for most disliked stock on the NASDAQ at a minimum.