This is definitely a test of patience. With a market cap of 27M this company is peanuts for a larger player. If the prospects are so good how come there are 0 buyers. I picked up a few more shares today but they will be my last until the stock holds a gain. How come larger players have no interest in the company? They have good customers, room to grow, etc. but it's nothing but crickets.
Actually, Pan is one of the buyers with Anshan, so he will still be the majority owner. I say the deal does happen, the money transfers and HPJ is off to the races in PV and EV batteries- I believe the stock will triple by year end.
When I visited the factory, they had added new equipment, and also made room for more equipment, one of the new equipments was strictly for HP, the batteries arebeing produced for their notebooks.
I think I got my point across as to the lack of communication the company has had with its U.S. based shareholders for some time now, and also the improvement the company needs to make in regards to this.
He (Adam) was in agreement with me and did promise to communicate with management about this. He was a bit annoyed himself regarding not knowing about the press release put out on the Chinese website about the Symposium meeting that took place. He agreed that most all news should be communicated even if it is not material news. (Btw, he did confirm that CEO George Pan was selected as Chairman of this Symposium)
I am not saying it will happen over night, but I do think we will see some changes as to press releases moving forward and getting more information.
As for the Anshan deal itself, he has been surprised that it is taking long as well. He believed that the projects and deals that was mentioned during the CC that would make a material impact in Q2 was not tied to the Anshan deal and that it was currently within the realm of the companies capacity, so without the Anshan deal, we still may see a much better year this year compared to last as far as revenues go.
There are more thoughts and details from our talk that I am not typing but all in all, it was a positive discussion and one that I feel he will take back to the company, yet and still, patience is needed to get past this Anshan deal.
Lastly, if you are an investor and would like to see cash be available for the company to spur further growth, then the Anshan deal is for you, if you don't like cash then you won't like the deal. Majority and minority holders are sort of irrelevant at this point. It is all about renewable energy and having the cash available to grow the business into the future, no one is going to invest $100 million into a business they don't know about and not use an experienced management to help grow the business. At the end of the day, everyone wants profits.
martik, your insight is extremely helpful. The stock however has not been holding any gains and in fact has been disappointing for more than a year now. At some point the stock price will translate to the prospects the company has in front of them. The fact that the stock pops and the stocks drops without holding any gains is true. You are correct he does not have the insight you do but he is calling the stock price movements as he sees it and that I am not disagreeing with.
Not only will it enable HPJ to be a tier 1 EVB and ESB supplier, but the cash infusion but according to my quick calc. it adds 3.50 per share cash to the post deal balance sheet, fully diluted. Bottom line insiders are paying almost $6 per share. Next few weeks are the time to accumulate.
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Chris, we had not had any meaningful deals announced since the Mophie deal, it is easy for anyone to post about the stock price in hindsight, however the company was/is clearly in a transition stage, and they are preparing for larger deals with larger customers, that takes time. The fact that he gets on and talks about the last year as if the world is ending tomorrow, is very telling that he cannot quite grasp what is going on with the company. Of course the stock price will not do well when we do not have any deals announced, and we don't see revenues accelerating. But that will all change, the DJI deal is one of the biggest opportunities I have seen the company come across. And, there will be more coming.
What is this guys argument? to sum it up in a nutshell... the stock price has not done well, I'm a fake portfolio manager, I am leading everyone to a dark hole, it is a Chinese company, the Sun is not going to come up tomorrow, the whole world is ending and that is because of me.
Meanwhile, in the real world, real things are happening, and the company is months away from accelerating the business they have worked so hard towards for the past several years. I've been here for a long time and held on throughout all of it, I don't have anything to hide, it's easy for someone to show up when they feel like it and make comments that may make them look smart for a day or two, but it's irrelevant.
and we will make a gradual move higher back to the $3's before anything else major in announced.
Big news and accomplishment today. Wall St. still not hip to the fact.
The story really hasn't changed as of yet. We knew that DJI was a possibly target, now it is just confirmed. If they were already at capacity they still need money to grow the operation. HPJ needs cash to grow. They have stated many times their focus is EV in bus and van market.
Higher margins at lower prices is great news. Low prices help keep competitors out of markets. The big news is the reduction the manufacturing costs due to new efficiencies. With more orders these margins will result in crazy high profits. Then they will be working both smarter and harder. I'm surprised that the stock did not run up above $2 this AM. And the low volume on this good news is strange. Buyers are being inexplicably cautious. Maybe they believe the report?
Sentiment: Strong Buy
Good points Marti. Plus, HPJ is a penny stock. The trading price is currently very low because this company hasn't fulfilled it's potential - YET.
i'm not going to say management is inept or bad in any way. they just are too small to have any impact and the odds are stacked against them to gain any traction because of their size.
From the recent Q call transcript.....In 2015, Highpower’s net sales were $146.2 million compared to $147.1 million in 2014. In 2015 we saw a decrease in net sales in our nickel-metal hydride battery business and new materials segment during the year, mainly due to lower commodity prices. Gross profit for 2015 was $27.9 million compared to $30.2 million in the prior year. Gross margin decreased to 19.1% in 2015 from 20.5% in 2014, primarily due to a decrease in the average selling price for both nickel-metal hydride batteries and the lithium batteries, as well as increased labor costs.
Don't be misled by the "noise" of the pumper(s) on this message board. Simply let the facts/numbers speak for themselves...