I haven't checked into AERT for a couple/few years. Glad to see they're still operating and kind of looks like they're doing ok. So they've had two positive quarters. A couple more and their earnings will be greater than their share price. I'll have to check if any stock has PE greater than zero but less than one. I see their website says they have an employee stock purchase plan but based on volume and price I guess not many associates participate.
I don't think J. Brooks is still 'in charge', despite his title. It may seem that way. But from what I hear, HIG is calling all the shots, via BOD control, except perhaps technical production details & R/D, which is what Brooks is fairly good at. My understanding is that HIG essentially approves all PR info. However, any 'spin' probably comes from J. Brooks.
If anybody follows this stock or knows more details please comment. From reading various docs it looks like there are ~90M shares outstanding but HIG can issue ~290M more shares if they convert some preferred shares. True? Is that the main reason the stock is under a dime for a company that looks like it has a lot going for it?
Yes. You are right. HIG can issue more shares. I think they may have options equal to share equivalents of 290,000 more, but I think that authorized shares may be around 450,000 or more.
There still may be a risk of this company going private, if total number of outside shareholders drops below a certain level.
Until housing comes back, I think any significant revenue and net changes will hinge on the Watts plant plastic production and sales, which at one time was touted as eventually being bigger than decking revenues.
I'm heavily invested here again. I made quite a pile on this some years ago when it shot to three. I've used the product for close to a decade and it is superior, if you have a problem with rotting porches, etc.. The production of resins also has encouraging possibilities. Having said this, I think PPS is soft because they are not being too upfront about earnings. Since they aren't part of a legitimate exchange at the moment, they don't have to report per share earnings. I like the sales numbers and the CC's still seem honestly hang dog (quietly unsensational) in that way Brooks has. I e-mail IR for per share data and they never answered, which rattled me. I'm still adding, but would but most of my faith in insider buying and sales growth numbers, which were alas flat last Q. Ten cents a share is just too tempting for me, since I'm already playing with the house money and housing seems to be recovering a bit. The east coast hurricane can't hurt either, especially as the product is nearly impervious to salt water. The other thing I like is that the company is clearly a going concern with active plants, real products and a large number of employees. It isn't a phony business, PPS doesn't deserve to be at ten cents IMO. Reasonable speculative gamble on recovery and growth should put it at fifty cents minimum, but then we have had market dysfunction for a few years now. I wish they'd try and get back on a reasonable exchange.