Unfortunately, the sales tax issue won't be resolved quickly. Not sure of any amount owed either. So many variables. Best hope is recent activist buys for $5. ARCI's last few years stock price seemed to be moved by when they receive money for their carbon credits as their appliance division is near breakeven ususally.
Mercy! but yahoo likes to play bad #$%$ with my posts.
I replied to snds 10's Feb 10 2015 msg a couple days ago, had a correction in a follow up and now my original response has been erased by yahoo.
So curious. It isn't the first time they've done this, either.
Are they somehow connected with those doing the manipulation?
True, and I still think it a good investment. They have positive net tangible assets and their balance sheet is strong enough for it, it'll just take a hit and they can cover it. The problem would be if they drag it out and fail in their reporting status, which they can avert of course. It's a tough call but I am still waiting for them to hit a normal low, though they are profitable now so they might not. Good luck, I think it's a good company and long term investment.
I think if they get law passed for non sales tax for future they will likely be able to settle for favorable terms. Plus if they restate and have less income of 4M over last couple years won't thet get a federal tax refund now for $1.6m in cash now... so the net out the door is 2.4M of cash which might take up to 3 years for California to make them write the check? Yes it's like a good chunk but not create a crazy low p/e. I think this activist investor will try to take it private in next few months. If they can get company bought for less than $5 they will do it, just in my opinion. Have a nice day.
Looks like its not so easy for them too--perhaps the best thing for the stock would be a settlement and one time payment for any amount owed to get this behind them. They say in their SEC filing that it will be "at least" $4M ($2.6M) net of tax (that is a big loss for them covering four quarters or more of profits), it is almost like they are a non-reporting company now because their financials have to be revised and can no longer be relied on and they stated that the process could take three years. I was ready to jump on this but after that filing I decided to hold off and wait for a traditional long-term bottom of $1.4 or so. If they settled and it amounts to only $1M the stock could jump from here, but if the news is $4M plus they owe it could tank.
Interesting development with that activist investor!
However, given the sales tax issue news of today (I still don't understand it exactly, but $4 million sounds really bad...) I am glad that I dropped my entire position here in mid December 2014!
Good luck to all!
So not sure if everyone is following the current situation. Big buyer of more than 11% so far presented something to the board of directors at the end of Jan. Some suggestions to help increase profits and share price would be my guess. If you look deep enough in the one SEC filing it appears they want the names of all the shareholders to try and get some board seats and also for any potential tender offer or offer to the shareholders. Is this guy going to buy the company? Sure looks like he's putting his money where is mouth is with all his buying lately. It does seem crazy we are at a p/e of 5???? The California sales tax issue or potential issue is hanging over the stock price big time. There's also a letter from him back to the board on an SEC filing that's interesting to read. Biggest thing he seemed to want is for Jack to be put back into CEO role. Likes Jack and his vision for the company. I thought Jack was looking towards retiring soon. I credit the Minneapolis Star Tribune for news story last Friday about all this. If CA sales tax is not required as the company has said and is still saying then look for a huge increase in share price and/or a buyout offer, but that's just in my opinion. Who knows. Have a nice day.
Ok I've been watching you talk about all this theory on stock price manipulation and think you might be onto something. Recently I've seen way too many 100 and 200 shares trades that just don't make sense to me. Stock will be up on good volume and then at the end of the day somebody throws in 100 shares at the bid. Have a nice day.
Noticed a new large buyer of shares with SEC filing recently. He now owns 663K shares purchased recently and appears to live in CA. Nice support for the company with his ownership. With this many shares in short time maybe he's looking to buyout the company and take private. IMO its a no brainer at these levels as long as they get CA audit done with no changes which I hope they will soon. Have a nice day.
When they resolve the "tax problem," the stock will go up. ( I do believe they will resolve it. Just my opinion.)
It's on my radar. I have been a customer of ApplianceSmart and have always been pleased with them. As the current millennial college graduatesz enter the work force and start to buy property, They will need appliances. I just put this stock is on my radar screen, but worry there might be some valid reason for the tumbling share price. Can somebody tell me why I should NOT buy this stock.
yet another stop loss gets triggered. This time, the micro-short selling (100-200 shares at a time) got covered before the last trade date for the January 2015 B short interest report period arrives along with its attendant rise in share price. The manipulators and their "clients" will escape the overt evidence that would put them in prison for their illegal works.
Those who pay attention to such things as P/E, ever hear of a company that is in the black (making a profit) being priced at such low ratios?
You answered half your objection in the third sentence with the first example: Downward pressure via sales tax interpretation problem occurred LONG after the manipulation began. "Hedge" funds move in and out all the time. You only have to look at their Form 13F filings to know this. If one exits and one enters and there's no difference in the 'tutes' overall proportion holdings of shares outstanding, the laws of supply:demand would ordinarily dictate stable prices.
This is different. This is price movement by 100-200 share trades to compel buying which raises prices further then dropping prices in 100-200 share trades to trigger stop loss selling where they buy up more.
13F filings are only required when certain conditions are met:
1) The moneys invested are NOT owned by the investing entity (hedge, mutual, private equity or public employee retirement funds, etc.) , but corporate cash reserves are exempt because by definition that money IS "owned" by the investing entity, as is an individual's money;
2) Those non-owned monies must be invested IN THE US Equities Markets and must equal or exceed $100 Million;
If only one of either criteria are met 13F filings are not required. That enables those with ulterior motives to evade any oversight. It becomes only detectable by the trading patterns left as evidence.
Arthur Conan Doyle's Sherlock Holmes character was the first to present to the world the concept of "trace evidence" wherein every contact leaves a trace and in the finance community (stocks) every trade leaves a trail. It is only necessary for those with authority to do their jobs and there has been no rank-and-file hiring in either the SEC or DOJ to implement Dodd-Frank because of budget cuts known as sequestration. The only hiring was with "administrative positions" (appointments) and their immediate staffs.
Ergo: No funds for hiring the necessary personnel and No funding for implementation of rules, regulations and laws governing the markets.
As usual I disagree. This stock is all about 2 things. Downward pressure because #$%$ CFO doesn't account for sales tax on CA rebate program and one hedge fund selling and another taking a big position in the stock.
I just cannot buy into your theory that someone has been manipulating this stock for 5 years for an eventual take out.
That the target buying price is at or below $3.00/share.
What have we recently witnessed?
Twice in the last month and a half the price was driven down to well below $3.00. The most recent was down to $2.56 and then BAM! Two days a nearly 10% of shares outstanding were bought at or below $3.00. Then it stops. A few pennies over are just taunting short sales.
Point is: those price drops were accomplished with 100-200 share trades, all for the purpose of buying up shares well below the $3.00 target. The perpetrators of this intend to make an offer somewhere south of $3.50 with an implied "premium" of over 15% of recent highs.
Regardless of any fairness of temporary trading price under alleged Efficient Market Hypothesis, the fact of blatant repeated manipulation to the downside bode ill for any true fair price for the shareholders.