I will never own ESV as long as current leaders are in place. In their January conf call they were bragging about their long-term contracts and implying that the healthy dividend was safe. They couldn't have been any more wrong. If senior leadership can't see 3 - 6 months ahead, that is scary.
Too many other national and local flooring suppliers will continue to take advantage of LL bad situation. Since there is no telling what the fallout in decline and sales and legal troubles, this is definitely a stock to avoid.
KKR with all of their investment experts clearly have made some poor investments and the stock is showing it. I think KKR still goes lower as they writedown more of their investments this year.
Eric clearly has a handle on Gencor's financial management and is likely an astute investor. His last trade in 2014 was selling stock after Gencor reached a 5 year high. Now he appears to have more than doubled his holdings. To me, this is a better buy signal than getting an analyst buy rating.
That would be a problem, but they also said backlog would increase to over 10,000 by year end. So their book to bill ratio will improve significantly in the second half.
Good earnings report. Forcasting backlog of over 10,000 by end of year bodes well for 2016. We will see if Wall Street analysts understand the revenue recognition for lease accounting. Stock looks cheap at 45.
GBX should continue to trend upward
I wouldn't expect much or any E in 2015 or 2016. If the best terms the company could get was 12% interest and a $800,000 origination fee, in an environment where 1-5% are typical term loan rates and ABLs I'd be careful.
Typically a 36% short interest is a bad thing as "smart money" is often doing the shorting. In GBX's case, they just reported earnings and CEO had very good things to say about the future of the business, as well as having $40+ million for buying back stock.
I would expect short interest to drop - hence, short covering.
Sentiment: Strong Buy
The CFO who negotiated the financing with the new lenders abruptly resigns. In 5 months, the CEO, COO and CFO are all out. Gotta love, the "leaving for personal reasons but will be available for consulting" quote.
I'll watch this one from the sidelines. For once, I agree with kblaber that STRL's propsects look really dire.
I'm amazed the stock is still trading above 4.
Sentiment: Strong Sell
It looks like the trading pre conference call is the low. After a great call and the company's commitment to buybacks and adding shareholder value through accretive, high ROIC acquisitions, the shorts will continue to cover.
I see the stock continuing to trend upward, as the likelihood for any negative company news is minimal. An analyst downgrade wouldn't make sense. Upgrades would.
Sentiment: Strong Buy
For those who didn't listen to the call:
1) without giving 2016 guidance, mgmt said that delivery of 25-26k railcars in 2016 is not a stretch, compared with 21k in 2015.
2) CEO commented that the stock price isn't trading on backlog or increasing margins.
All in all, I'm very comfortable with the stock and management.
Longs should definitely listen to the call.
If the company had no financing, then I agree that vendors would demand upfront payments and sureties would be less willing to guarantee work. Corp insurance policies, except workers comp and health insurance, require upfront payments.
The $40 million term loan and revolver give the company sufficient financing to conduct business and give vendors and sureties comfort.
new railcar backlog as of May 31, 2015 was 45,100 units with an estimated value of $4.86 billion
Railcar backlog as of November 30, 2014 was 41,200 units with an estimated value of $4.20 billion
31,500 units with an estimated value of $3.33 billion as of August 31, 2014.
I expect the stock to close up today after the conference call.