Please go away if you don't own anymore shares.
There are plenty of other stocks that could use your support on their message boards right now. Just look for stocks that are trading at a multiple of 3.5 times their 52-week low, and warn them how the stock is all a scam.
Also, the FRPT.ob stock that you are pumping now shows that an insider sold 5 Million shares @ $.65/share, in a private sale, on a day that the stock closed @ $1.21/share. That is at almost a 50% discount, yet you bash Phillip for a similar deal but only selling @ a 33% discount.
Please go away.
"I know you know why"
Sir, i am sorry but i do not know who you work for or why you claim that you cannot disclose this. please elaborate. tell us sir what your responsibilities are. if you are a mystery man, a spy, or someone of importance, i should think you would not be spending the middle of your day scribbling notes on a yahoo.com bulletin board. is it true that you work for vendor near the stock exchange?
However, i am finding this bb to be very revealing. There are those who make many unsubstantiated claims and vague generalizations, and those who plainly produce the facts based on audited SEC documented filings. For those in the second category: kudos and many thanks.
Review of your neg thesis Part 2:
You claim that the company has falling margins: Again you truly display your lack of knowledge and research. The company, by its very nature, incurs costs for projects up front and then books the revs when the job is done or a portion is completed. This is why 1Q gross margins are ALWAYS the lowest during the whole year, and their fourth quarter is their strongest Q (both in revs and gross margins). Therefore, you have to look at margins on a year over year basis, not a quarter over quarter basis (It�s called accounting 101 my friend. When you get to college you will take that course). Yes, margins were lower sequentially (from 26% to 17%), but GM�s were up from 14.4% in 1Q05 to 17% in 1Q06. Where I�m from 14 is smaller than 17 and thus we say margins were up. There�s one more little great nugget of information here that hasn't been mentioned. Has anyone looked at SG&A over the last 9 quarters? Well, I have. SG&A has remained almost constant while the company continued to grow revenues at a solid pace. Yes, they were up about 20% q/q in Q4 but this we due to one time costs associated with the HM White acquisition. This steady SG&A means LEVERAGE!! The more revs they do, the higher the earnings power. This is why they will be able to show 50-60c in EPS on $120mln in FY06.
You also claim that the company is not profitable. Ok while they were not profitable in FY05, they already posted a profit in 1Q06. I know you can�t understand how this is, because you only see the 7c EPS loss #. However, we go back to accounting 101. Non-cash, one time items get backed out on wall street my friend. Thus if you back out the $1.08mln warrant charge, the loss of $736k that is shown in the press release is actually a profit of $344k. Ok, it�s nothing blow out, but it shows the ability the company has to make money. The best thing here is that you are able to get in now while they company is still just becoming profitable.
Lets review your negative thesis:
You don�t like the shell companies. Well if you were a little older and had a little bit of tax knowledge, you would know that people with money like to shield their future tax commitments from current asset appreciations. These entities (not shells) are a great way to pass along wealth to children with little or no tax implications and they are also useful for the individual as well. Is this illegal?? Of course not. Soooo many people do this and I don�t think they SEC would really think to highly of them disclosing it in their filings if it was illegal.
Sandler buys 100 shares at a time buys to pump the stock. Well, lets look at the filings. I see 25 buys buy Harvey Sandler from July 2005 to April 2006. The lot sizes range from 600 � 198,200. Ironically not one of these buys was a 100 shares. Yes, the 600 share purchases are small. But we all know that this stock has a very small float, and buying size without pushing up the price isn�t that easy, you have to be patient. And, if he was only able to get 600 shares on one day, he still has to file that purchase as he is a 10% owner. In fact, if we look at it closer, the 198,200 purchase was in July 2005 at $2.92. The next largest purchase was the most recent (45,600 shares at $8.71). Now to address one more aspect. You ask who is he anyway? He started Sandler Capital. He started with little seed money and the company now manages several billion dollars. How do I know? It�s all public info my friends. He is not an idiot and he has no need to be involved in a pump in dump scheme for a couple million in profits as he�s already a couple hundred million. http://www.sandlercap.com/team_hed_harsan.asp?ID=harsan
Ah another sorry and ignorant CECO shareholder. Never once did i insult or disrespect any poster. We all have our opinions and last i checked, this country was America. I wont even stoop to your level.
First of all, who ever the beneficiary was sold last year when the company was in a huge hole. I would have sold as well. That could explain the huge discount.
Secondly, i could care less about CECO. Its a shame you guys dont see it? The company has never made a dime since inception. They have all these backlogs and for some reason cant seem to turn it into profit for the shareholders. They are way too diversified, which explains the low gross margins. Sandler averages a 100 shares a month and you guys think thats buying? Do you even know who Sandler is? Look man, keep doubling down ok.
why dont you tell us who sandler is then? since you know who he is! and while you are at it show us this 100 shares a month he averages, c'mon please prove your point, dont just throw bull
2000 shares added today by yours truly! and may I say what a bunch of chickens you guys are, stocks go up stocks go down, thats the way of the world guys! how long have you people been in the market? havent you seen this before? so what the stock is down, but can anyone seriously tell me where the bad or negative news is? what is it? sales growing around 80% this year over last? profits are about to begin this qtr. and increase qtr. over qtr. probably for the next 8 to 12 qtrs.? ethanol play? china? india? a million factories and indust. facilities that have to upgrade their vent. and filt. systems? the $16 target and strong buy? the huge amount of stock owned by the insiders and sandler? the $13 million april? $40 million backlog? the low float? oh wait, I got it, its the 1.8 million shares p.d. sold because he more than tripled his money and took some off the table because he is a smart businessman! yes thats it! he is suppose to hold until he dies, he is only close to 70 when did you
Now that is what I call a very swift correction in a thinly traded issue. My god that was rough, hopefully there are still a few of you left out there that did not get the margin call and get forced out. Always hard not to get liquidated if you speculate on margin in an avalanche like what we saw. Mirrored perfectly the slide in the Nas only a larger percentage drop, usual stuff for small cap specs like cece.
Good short term calls from our resident "scam" alert system. While I disagree with both tt and swc they're calls do look good on paper:) They won't hold up over the next several months but I'm sure they feel good about themselves at the moment.
Technically this stock needs to form an entire new base now, most of the holders have been shaken out and I wouldn't be surprised if 90% of the smaller holders have switched hands already. We've got an entirely different shareholder base today than we had 3 weeks ago. Interesting stuff.
Thank god buying power finally arrived, I was getting sick by the lack of support. Anyone who needs to sell can do so at these prices. Anyone left to sell will most likely be gone in the morning.