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WSI Industries, Inc. (WSCI) Message Board

  • cpa38 cpa38 Mar 19, 2013 4:51 AM Flag

    There's a bright side to this mess

    When the stock trades down to a penny, it'll have a monster dividend yield.

    Monster dividend yield possibility? That's got to be worth at least 50 cents per share in our sum of the parts valuation method. Lets recap the hidden value here with our little jewel:

    $4.50 Putting a 10 PE on T*urd like earning
    $0.50 Idiot CEO
    $1.00 Stupidly worded press releases
    $0.25 High probability of constantly being sued for dumbness
    $0.25 Chest pounding about underutilized capex
    $0.25 Empty plant premium
    $0.50 A gazillion percent Divy yield when stock trades to 1 penny

    Man, our little jewel is worth at least $7.25 .... In the entertainment industry.

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    • Argyle,

      I bought shares in a turd once at $11, years ago. Quarter after quarter I suffered through terrible results, terrible press releases, terrible earnings calls. But I had faith the turd's industry was on a major upswing. I backed up the truck when the turd fell into the highs $1s and low $2s. You know that turd too Argyle. It just got stolen from us at $17.75. ... EDAC

      I have faith that if I hang with this WSCI turd awhile longer, it will eventually pay off too. Not this year. Maybe not next. But I suffered through 4 or 5 painful years before scoring an 8 bagger on EDAC.

      WSCI is trying to get positioned in AERO. We know the story there Argyle. There is massive growth ahead.

      WSCI is trying to get positioned in Energy. Fracking. Check out the Business Insider tweet this evening re: Fracking. Follow the link to the presentation. One slide indicates there are currently 12,000 operating wells in just the Marcelles field alone .... Moving to 100,000.

      There's tremendous opportunity and growth in the areas where WSCI is making the effort to get positioned. The only question is whether the 2 clowns running the WSCI show can get us there. These clowns remind me of the EDAC clowns. And EDAC worked out pretty darn well.

      So, I'm warming up my truck again ....

      • 1 Reply to cpa38
      • I hope so, for your sake. At least with EDAC, sales increased every single year that Pagano was CEO except for 1 year after the financial crisis. And when Pagano said something, it mostly came to fruition. Both CVU and WSCI seem to be moving backwards a year with their projections during economic recovery. Both CVU and WSCI had aggressive expansion plans just before sales started plummeting. I have to question both CEO's visions and pulse on reality. With WSCI cutting their projections now during good times, I have my doubts this CEO will be able to deliver consistent growth in the future. I will NEVER trust CVU's CEO again, and I'm starting to feel the same way here.

    • Glad I got out of this turd a while ago with a small loss. When it goes back to $4 I'll get back in. Nowhere to really go but up when it's that least they are still profitable so bk isn't likely.

      • 1 Reply to argyle46
      • It wasn't all roses with Pagano. There was a long period where sales were slowly rising, but income went no where (2008-10). We got nothing in the way of decent disclosure in the SEC filings, and the conference calls were even less informative. When things got cranking on the bottom line (2011-2012), we learned of the massive product development expenditures of earlier years to bring the new products to market.

        You showed up years after I had been playing in the EDAC sandbox. I was there for the fall from $11s to $1s (2007-08). Riding it down wasn't fun. But that ride, and being so familiar with the story, gave me that much more comfort to back up the truck.

        WSCI can unfold in a similar manner. They are taking hits to the P&L now to get the necessary AS9100 quality certifications, and development costs, to attact Aero business. We know what's in store for Aero as a result of our exposure to the EDAC story - massive growth. WSCI is so small, that even a crumb from Aero can cause this company to explode overnight. We just need to have patience. It may take awhile for them to get their foot in the door somewhere, but it will happen eventually.

        On the energy front - there's an air pocket happening now on the drilling front. The number of domestic rigs operating has fallen appreciably. This is a short term factor that will take another year or two to iron out. Many were drilled when gas was $8 - $14, then capped with the price fell to $2-$3. We're going to have to wait until those are opened and pumping before well count starts increasing again. Plus, there are a number of pipeline expansions that will be opening soon that can take gas from the fields in Ohio and Pa down to the Gulf for storage and processing. Well count should start another round of torrid growth later this year or early next.

        If nothing else, stay engaged here with a small position. This is another EDAC, just waiting to unfold.

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