Is That a Light at the End of the Tunnel Or an Oncoming Train? the unbearable pains are ahead. It is prudent to take some money and some risk off the table. Global corporate spendings are going to be a big headache because they trimming down to minimum and scale their spending.
Perfet time to get out and protect investment.
Watch out for all the rosy outlook and forecast from SYMM. Wait until new management clean up its huge mess first and improve its culture.
Institutional Investors exiting...Do not become an emptied bagholders.
04/05/2009 Ford Equity Research downgrades SYMMETRICOM, INC. from MOST FAVORABLE to FAVORABLE.
04/04/2009 Symmetricom Gets Contract from ITT Corporation Space Systems Division Valued At Minimum of $4 Million
03/31/2009 Thomson Financial - Gradient upgrades SYMMETRICOM, INC. from HOLD to BUY.
7-Jan-09 STEIPP THOMAS W Officer 6,116 Direct Automatic Sale at $3.69 per share. $22,568
6-Jan-09 STEIPP THOMAS W Officer 14,200 Direct Automatic Sale at $3.90 per share. $55,380
5-Jan-09 STEIPP THOMAS W Officer 12,000 Direct Automatic Sale at $3.67 per share. $44,040
2-Jan-09 STEIPP THOMAS W Officer 10,030 Direct Automatic Sale at $3.79 per share. $38,013
ARMSTRONG JAMES Officer Disposition (Non Open Market)4-Aug-08 13,659
BROMAGE BRUCE Officer Disposition (Non Open Market) 11-Aug-08 42,259
With the economy projected to slide downhill for the rest of 2009, with unemployment projected to climb through the end of the year and with default rates in credit card portfolios, commercial mortgages and buyout loans still climbing, etc.
SYMM: Do Not Catch a Falling Knife.
Outlook and forecast for Symmetricom is terrible and stock is high risk.
Most important of all, SYMM doesn't have sufficient assets to borrow against, keep wasting its cash and it isn't generating cash, then it's really only a matter of time before its debt holders get tired of financing its business. That's especially true now.
SYMM hemorrhage cash, have weak balance sheets, and are drowning in debt make lousy investments. On the flip side, those that gush cash, are smart with their use of debt, and have solid balance sheets backing up their businesses can be tremendous companies to own.
Do Not Catch a Falling Knife...Timber !!
How do you figure Symm is hemmoraghing cash? Their December balance sheet had $100MM in cash and investments. Their remaining debt is $60MM. So there is a net cash position of about $40MM. They generated about $8MM in cash from operations in the first six months of the year.
So, positive cash flow and more than enough cash to pay off all their debt. Sure outlook may be down (the whole economy is down). But these guys are not leveraged so their downside is limited. And with their restructuring announced in January, they got rid some fat - including GI Joe, perhaps. Same with thier Q of crap investment. It was a crap investment. But its done. Sure they might as well have just flushed that $$ down the toilet. But that ship has sailed. It was lousy technology, lousy investment, but they wrote it off a year ago.
Joe, move on.