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EXIDE TECH NEW Message Board

  • analyst1 analyst1 Nov 4, 2013 2:56 AM Flag

    Great news – September operating report is out – the tide is turning

    The trends are definitely encouraging – this company may eventually make it:
    Net sales are up 36%, $121M versus $89M in August and $87M in July ( probably mainly due to Vernon reopening).
    Subsidiaries presented profits of almost $5M, versus losses of almost $6M in August.
    The company has become break even before reorganization items, presenting a symbolic $500K profit. This is usually a good sign for a bankrupt company in chapter 11 (take a look at AAMRQ’S improved financials since its November 2011 chapter 11 filing). This is even a more impressive achievement given the fact that XIDE’s cost of sales is still very high, probably due to lead prices still being so high.
    Bottom line – net loss has significantly narrowed to $3.6M from $24M in August.
    Shareholder’s equity is back up to almost $43M from the August-end low of $33M.
    As an equity analyst for many years, I am getting a good feeling about XIDEQ: although not out of the woods yet, the monthly financials coming out may actually represent a true chapter 1 1 turnaround story.
    In addition, this should help out and solidify the motion for appointing an equity committee, so the hearing set for November 14th on this matter could be now more interesting, despite the informal nature of the hand-written request by a private shareholder named Alfred Shams. By the way, the fact that the judge set so quickly a date for the hearing (just 2 days after receiving Sham’s letter), upon such an informal request (lacking the relevant legal jargon), is also encouraging in my view. Also, it will be interesting to follow and read the company’s objection (the company itself almost always objects to the request for an equity committee).

    Sentiment: Buy

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