Gencor is a private candy store for it's board. PLEASE TAKE THIS STOCK PRIVATE. IT NEVER MOVES, THEY HAVE MORE CASH THEN THEY SAY THE COMPANY IS WORTH PLEASE GIVE US A FAIR $15.00 PER SHARE
Houtkin is selling but these are not open market transactions given the volume of the stock traded. Someone is accumulating shares in a private transaction.
Ok so I've been seeing messages for the PennyStock101 newsletter all over the boards these past few days...At first I thought it was nonsense, but then I say decided to check it out (It’s Free). So I got an alert on Thursday for a company called QKL Stores Inc. (QKLS). Naturally I was skeptical, but to my delight it went up over 80% in just 45 minutes. They are releasing a new trade alert over the weekend. Just google "pennystock101" you'll be happy you signed up, Best of luck to all! :)
Yeah, but like I said, there is zero interest in selling the company so its liquidation value isn't very relevant. The CEO, Mr. Elliot is an 85 year old man whose son is the President. They own all of the voting shares and have this company on lockdown. They have never given any indication whatsoever that selling the company is on the table, so all you have to look forward to is how much can they grow that cash pile. So considering it's trading at a 15% discount to cash, and a 1.07% ROE, it's more like a 1.23% return you're looking at barring an improvement in operations. Still less than buying bonds.
The only real thing that might happen to improve that is a long term, well funded highway bill to increase their cash from operations.
Eric clearly has a handle on Gencor's financial management and is likely an astute investor. His last trade in 2014 was selling stock after Gencor reached a 5 year high. Now he appears to have more than doubled his holdings. To me, this is a better buy signal than getting an analyst buy rating.
Eric added the 15K shares to his holdings of 12.5K total 27,500 shrs; probably a holding period on the new shares - last time Eric sold was Feb 2014.
If you look at the stock action, Eric exercised the stock at the recent low on the day the market cratered. If he was going to exercise and sell he would have done so at a higher price. I read this as he is holding to take advantage of long-term tax rate on appreciation of the stock. Time will tell, but I'm sure the company has a blackout period so the window to trade is probably limited.
If I am reading the form 4 right, he could have waited until 2021 to exercise the option. Since there is no dividend, that would tell me he plans to sell the shares, but I don't know why he is waiting.
Since Gencor CFO Mellen has been with the company back in 2011, you can see a significant turnaround in the company's performance and a continued improvement in Gencor's balance sheet.
Look at the improvement in gross margins as revenues have dropped like a stone. He has cut SG&A pretty dramatically, sold off assets, recovered bad debts, recovered $3 million in tax credits and made over $14 million from investments.
If Eric's exercise is a buy and hold, I am optimistic about Gencor's prospects.
CFO just exercised 15K shares at $7.15 a share costing him a cool 107K on the 24th of AUG. Be interesting to see if another SEC Form 4 hits in the next couple weeks to sell those shares at less than cash value
It's really a time value of money situation. Sure they have more money on their books than market cap, but they also have a 1.07% ROE. You can go to the bank and get a CD with a better return. By buying GENC you basically get a very low risk stock that won't offer much of a return without a major catalyst like a big increase in highway spending or a buyout (which the owners are unlikely to allow).
Joking aside how can the market cap ($92M) of a cash flow positive company be less than net cash ($97M)? This only happens in dubious foreign company listings where no one is quite sure if the financials being reported are real. I mean if they announced they were shutting down the business tomorrow and distribute all remaining assets to shareholders, the price would still go higher than it is today. How can it be?
I agree on the $17, but I've been sitting on this stock for 10 years and it doesn't budge, why are they even a public company?? They hoard the cash, I'm assuming the board of directors is using this company like a personal piggy bank.