Wouldn't be surprised to see more. This is what happens when a stock hits either the add or delete list for the Russell indexes. Think of all those index funds out there who have to adjust their holdings.
I told you guys there would be big volume today due to the Russell rebalance. MLNK stock continues to trade some big blocks after hours. Right now today's total is showing at 3.1M shares.
bobo, yes. A year from now b4 they say we'll see results, and the costs are front-loaded. Like you, hoping this time is different.
dotnet, google Russell reconstitution and click on 1st one in list. Should get you to the page with lists of preliminary adds & deletions. Final comes out this Friday
From the release:
The Company intends to invest approximately $20.0 million over the coming year in specific actions that are expected to improve annualized EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) by approximately $32.0 million. Many of the investments the Company will be making are process, people and systems oriented, and are part of an organizational redesign that aligns resources behind client needs, rather than by department and geography.
The programs unveiled will be funded through cash on hand, anticipated proceeds from the sale of ModusLink Corporation owned real estate, and existing bank facilities.
I think a $32M bump in EBITDA would be huge, moving MLNK well into profitability. Notice too that they are saying the program would be funded thru cash on hand, real estate sales & bank facilities. That seems to leave room for the acquisition we've been speculating about for some time now.
The Company anticipates it will incur restructuring charges of approximately $12.0 million in its fourth quarter of Fiscal 2016.
Fiscal 2016 ends July 31, so we'll see another hit to earnings when the 10K comes out on or about 14Oct.
The preliminary lists for the Russell 3000 index are out, and MLNK is on the delete list. This might explain some of the recent downward pressure if some funds are front-running the reconstitution. It's final next Friday, so expect some heavy aftermarket trading in several securities Friday next week.
Benzinga saying 500 Oct $8 puts bought. Previous open interest was 10. So it's possible part of yesterday's downdraft was some kind of hedging strategy if not an outright short attack.
bobo, I went thru the 10Q quickly last night, and didn't see much to cheer me up. As someone said, the gross margin was really low. I didn't find a whole lot of information in the Q, and that to me is another problem with this company - terrible communications with the shareholders!
I did see that there was a big swing in trading securities:
During the nine months ended April 30, 2016 and 2015, the Company recognized $(6.5) million and $5.7 million in net gains (losses) associated with its Trading Securities.
So, we're talking about a $12.2M downswing there. Additionally, there was a comment that they had repurchased $500K of their notes for $400K. That was kind of interesting.
One thought - going forward, the earnings comparisons should be better, since I think the year-ago figures will reflect the loss of business. Also, I've found myself wondering if this is one of those deals where management writes off everything but the kitchen sink in order to clear the deck for future reports. Right now MLNK is hovering just above the 52-week low on high volume (for this stock), and barring some big news development, we probably won't hear anything until the next report (since it's an annual, that won't be until mid-October), so I'm wondering where the impetus for a big move up would come from.
We know the quarterly report is due in about a week, so maybe this is speculation or a leak, or it could just be a big buyer positioning themselves in a oversold stock. We've been waiting for a loooooooong time for MLNK to make a move on the acquisition front, so it's possible that something is going on there - the Street usually knows before we peons get the word. At any rate, it's nice to see the share price up from the 52-week low we hit a couple of days ago. Share volume right now 355K, price $1.58. Good luck to long-suffering MLNK shareholders.
Last year they announced on June 8, and the previous year on June 9. I think June 9 is the latest they can report w/o being out of compliance with SEC rules. Due to lack of company transparency, I don't have any handle on what to expect. As I noted earlier, the rise in MED's share price could give them a boost - that is if they still own any. Guess we're in wait & see mode here again.
T. Rowe Price's Q1 holdings report came out about 1/2 hour ago, and looking it over I don't see any SONS shares (could have missed them). IF they no longer have SONS, that would imply that they sold 1,224,528 shares of SONS in Q1.
They're showing 1,013,172 shares, up from 527,489 shares. My thesis that one or more of the big 'tute holders bailed last quarter is now in question, but we've still got a few to go...
Dimensional's HR for Q1 is just out, and they show 1,901,383 shares of SONS as of 3/31 as compared to their 12/31 holding of 1,641,624 shares. They added 342,192 shares in Q4, so they've added 600K shares in the last 2 quarters.
Vanguard's holdings report came out this morning, and it shows they held 1,980,706 MLNK shares as of 3/31. This compares to 1,541,034 they held at the end of last year, so they've added almost 440K.