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Insmed Incorporated Message Board

accugrowth 6 posts  |  Last Activity: May 28, 2015 8:59 AM Member since: Oct 16, 1998
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  • accugrowth accugrowth Mar 16, 2015 10:01 AM Flag

    Tutes is the short way to indicate Institutions.

    Your negative view of ELNK does not hold up as they have over $130 million in cash. They are looking to pay down debt starting May 2015. ELNK has also announced they are willing to sell hard assets that generate low margins to improve their profitability and pay down even more debt.

    Revenue is where ELNK faces a challenge. The old consumer business is winding down; they are controlling costs to avoid loss. The new managed services business is growing; however, it will take some time for it to become the primary revenue generator.

    In the meantime, ELNK is paying me 5% in dividends to hold the stock. I am a long term investor. Five years minimum is typical for me. The current low share volume indicates that retail investors and institutions agree with me.

  • The former CEO of ELNK, Rollo Huff, sold all 2 million of his vested shares per the recently posted proxy statement.

    Normally, the company has first right to purchase the shares of former officers. It will be interesting to see if ELNK used some of its extra cash to reduce the share count. I do not expect clarification until the Q1 report in May. Just speculating.

    McRed had some strong feelings about Rollo's leadership.

  • News hit just a little while ago. ELNK ranked number 2 out 501 MSPs worldwide. The black fiber and quality backup/security services are main reasons for ELNK recognition.

    To find the article just do a news search for earthlink and MSP.

  • Revenue turned out to be better in Q1 than expected. Cap EX was also low. These two dynamics combined to create the best Cash Flow in several years. For ELNK, Cash Flow is the important metric. Full Year Guidance was adjusted above the high range of the previous 2015 projection provided in February.

    The company took the reasonable step to pay down $26M in Long Term Debt and reduced its interest costs going forward by $2M per year. They plan to continue to pay down debt. They are also open to selling some low margin assets; listen for any comments about this option in the conference call on Tuesday.

    The number of shares outstanding is another important metric.. Bonuses were paid in Cash instead of shares in Q1. Thus, shareholder ownership was not diluted. There is the immediate value of this decision plus lower cost to pay dividends going forward.

    There are around 6M ELNK shares sold short as of the middle of April. Covering this position should add fuel to share appreciation. If ELNK is able to stay above $5/share, there are large institutions that will move this company from the Speculative to the Value category in their portfolios. That is a good thing for the long term share price stability.

    IMHO
    AccuGrowth

  • Reply to

    Getting Back

    by hoosierbill1234 May 12, 2015 12:56 PM
    accugrowth accugrowth May 16, 2015 8:46 PM Flag

    In my opinion, the recent decrease in the HI stock price was related to the decrease in future order volume announced in their previous quarterly report. There was angst that it would continue in the recent quarter due to 1) decrease in fracking sand production; 2) disruption of Ukraine potash production related to the civil war there; and 3) decrease in growth in two new markets for HI -- Russia and China.

    All three of these areas are important, but are overshadowed by growth in Coperion's plastic extrusion equipment. This area of the Process Equipment Group represents a very large portion of Revenue and Profit Margin. The conference call indicated that these large orders can create 'lumpiness' in reported results as contracts are initiated, progress slowly or quickly, and finalize.

    The good news for HI Longs is that Coperion has an upgraded extrusion line that is more efficient and creates higher grade plastics. Some of the delay in orders may be related to the release of this upgrade. The conference call specified expectation for increased future orders during the next 6 months. This may be the reason.

    Assume that fracking sand, Ukraine, Russia, and China also improve in the near future and you will have HI making profit on all cylinders. They will have a rich cash flow to pay down debt or seek additional 'fold in' acquisitions.

    Hold past $40/share.

  • Reply to

    HI

    by incy201 May 27, 2015 11:22 PM
    accugrowth accugrowth May 28, 2015 8:59 AM Flag

    Was the Coperion merger positive for HI. Yes. Revenue is up over the past 2 years and margins are improved.

    HI only has a small pile of cash at the moment. With the release of their upgraded extrusion system, I expect an increase in future orders and cash on hand over the next few months. Then, they can acquire for growth.

    There is no hurry. IMHO

INSM
21.91-0.05(-0.23%)3:33 PMEDT