Considering what took place on the conference call and what took place AFTER the conference call, I find the Board's lack of subsequent communication with investors to be a lapse in judgement.
To give no reason for the departures and to make no statements other than that the company will commence a search for new executives is, in my view, treating the shareholders in a shabby manner.
The shareholders deserve to be told what difference of opinion between the management and the board led to this, if any.
In my opinion, the company now is "in play" for anyone that wants to buy it, especially given the extremely low share price.
It is archived on the company's Investor Relations page.
Go to the main company web page then add the following to it: investor-relations/financial-reporting
You should see the link to the audio of the conference call.
If they spin the TiO2 business the shareholders still own it, right?
They said the TiO2 business is worth $2.0-$2.5 billion.
That compares to a current market cap for the whole company of $2 billion.
hence, spinning it off will unlock alot of value.
Am I missing something?
Well, yes, the Rockwood Euro operations would be making money because the Euro has collapsed in value.
The $US operation is losing money because the US$ has soared in value.
The question I have is: How labor intensive is the production of TiO2?
Steel is very very labor intensive, hence the big competitive advantage of China.
The worst thing I can see is that the SSS for the franchised units looks very poor.
Midpoint of guidance is above the consensus estimate.
Just raised the divided recently.
Hedge fund raised its position recently.
was up earlier, now flat in a very weak market.
This is all #$%$....no, not your post, the company's report.
But, where do you see cash flow information. I see nothing that indicates any particular cash flow result for the quarter.
They claim difficulties in producing astaxanthin, yet inventories are way up vs end of the FY.
Apparently, the new equipment is NOT YET IN USE. "...increase in extraction costs as we make progress toward operating our new extraction plant at full capacity."
So, it looks as if they have a bunch of inventory that is "in process" and cannot be sold because it is unprocessed.
An article in the Austin Business Journal confirms that EZPW "may be looking to divest its Mexico-based financial services subsidiary."
According to the article, the unit posted a loss of $19.5 million in the quarter.
My understanding was that the loss was going to be a one-time thing because they were reclassifying any loan that wasn't entered into their IT system within 6 months as "delinquent" even if the payments on the loan were being made on time.
In my mind, this raises the possibility that the unit will be sold to cronies for a song based on the distorted earnings. basically, they can pawn their own subsidiary to some "insider" who knows he's getting a good deal.
This private equity / activist investor annonuced today that it had increased its stake in GNC from 4.3% to 6.3%, but it remains a "passive stake."
i think that's why the stock jumped $1 today.
Earnings are out tomorrow morning and the conference call starts at 8:30.
They have already told the Street that earnings would be at the high end of guidance.
So, the only major point of "unknown" that may be cleared up tomorrow is what they provide in terms of guidance.
The current consensus for the new fiscal year is $3.19/share.
Jimmy & Dog are both correct.
If ETP cut the distribution, ETE would get less in distribution payouts on the units it owns duirectly, but it would suffer a catastrophic drop in the amount of IDRs that ETP pays up to ETE for the privilege of having a GP in charge of it.
ETE desperately needs that cash flow in order to pay the debt service not only on its own obligations but on the debt it will incur when it closes the Williams deal.
You make serious charges but without specifying any claim.
What company failed?
I buy stocks, not frickin clues.
The Converts, which carry a 2.125% coupon, are currently trading around 60 cents on the dollar.
They mature on June 15, 2019.
If the bonds are paid off at maturity, the yield would be in excess of 19%.
The company could earn essentially a 19% return on its investment if it were to buy the bonds back.
Of course, they would push the price up if they were to try to do so in the open market, and a tender offer would need to be at a higher price.
There is $230mm (face value) of these bonds outstanding.
The biggest risk to the company is an inability to pay off these bonds in 2019 because of an inability
to access the corporate bond market and a lack of lenders willing to lend to a pawn chain.
Rather than use the proceeds to retire the debt, they could (should?) pay down only half of the debt and use the other half to buy back stock.
If they were to sell the MDS division for $200mm and used say $70mm for debt reduction, there would be
$130mm left for share repurchases.
At $32.50/share, that would retire 4 million shares, leaving 6 million shares outstanding.
With the defense business throwing off FCF equal to 75% of $30mm of EBITDA, that would be $22.5 million of FCF on 6 million shares or, about $3.50/share in FCF. At a 10% FCF yield, that would mean a $35 stock price.