Even the directors dump their stock. Hart lives it up at the LaJolla Beach and Tennis Club having pretty much retired or fired all the disloyal employees and loads the Board with cronies. No activist would touch this as there is no value. The Ag business is worth zero or a $3/shr writeoff. UCP is losing big money in a robust housing cycle. That is another $5/shr writeoff in the near future.
Sentiment: Strong Sell
The management is slowly sucking all the value into their own pockets. Outrageous salaries and hardly any stock ownership. The Canola plant is the all time stupid investment. UCP is a 2nd rate home builder. I do not see how they can realize on the investment as home builders in general are out of favor as the cycle matures. The water is valuable but the present value keeps declining as the discount rate rises and the resource rises slower in value. This had such promise at one time but lacks any catalyst. CEO Hart takes $2.3 million in salary and owns 34,000 shares after 20 years. He sells all he gets as options. Avoid this awful company.
Will result in reduction of $150 billion of debt for GE. GE balance sheet will look very good with total debt down to $170 billion. It will also result in a 7.5% dividend as they will distribute $20 billion of stock to us. The appliance sale will result in a dividend increase to $.25 (up from $.22 today) so stock today yields 3.8% on that new dividend. The stock buyback of $5 billion shrinks the cap 2% with earnings higher as a result. There are a lot of moving parts but the jet engine business and power are the gold.
Sentiment: Strong Buy
It's no mystery. The business model failed. They will lose $6MM from ops in the June qtr and another $6MM in Sept. There will be no dividend for sure.
Faison started Jan 10, 2011. He was there, so guilty as charged. It is the BOD who was really stupid. Most BOD just want to keep their pay and options going and have really bad judgement. Witness Time Warner buying AOL. Well those Pulse options did not pan out so well.
Because you had changes in receiveables and inventories cash flow is negative one quarter. Ongoing cash flow is $3.2 million, $2MM of NI and $1.1MM depreciation. Capex will wind down so cash will build again.
Let's hope GOV keeps dropping. That will encourage activists to take a position. GOV is widely held and I do not think major shareholders think buying a conflicted stock at above market prices is a good idea. The BS is also levered enough that they cannot lever more to buy properities.
Amazon and Alibaba are siphoning off marginal sales. Items with long lead times are being picked up by Aliexpress. Amazon is also getting orders for immediate company needed items in several catagories. This will soften sales growth and be a big impact in a downturn. Beware.
We use 50 million pounds a year so do the math on the EPA phaseout schedule.
What the EPA is calling its “preferred HCFC-22 consumption allocation for 2015-2019” shows a production allowance of 30 million pounds in 2015, 24 million pounds in 2016, 18 million pounds in 2017, 12 million pounds in 2018, 6 million pounds in 2019, and zero in 2020. If you believe in economics, prices will rise to meet supply reductions. The production decline in 2015 is 22 million pounds over 2014 and that is 6 months from now. The price rise could be dramatic. Reclaimed product prices are the only game in town after 2019 so guess what kind of prices we will see. Hudson will be $20/shr on $2.00 of earnings or higher.
Yeh--but base business losing $23million annually or $.33. It is not a viable business as they have been passed by other providers including cellular alternatives. It did not work!!
They cannot overcome the massive interest payments to Oaktree and others at 12% or $17 million/year annual rate. They would have to increase sales by 40% just to overcome the interest payment. They would still be losing money at that point. They have a commodity business. The equity is a mere call option on survival. Unfortunately, the next downturn will finish them off. Oaktree will get what it deserves. They are carrying it in their funds at cost--get serious.
No question it is a cash flow engine but slow growth. Banks and insurance are still on the mend so good upside still, but after that what. He never sells because of taxes.
Biotech is the future of medicine. He owns a Dialysis company for the cash flow and it is vulnerable to Gov reimbursement. IBM is old tech. He has a big cash flow portfolio with little growth.
They will now burn cash at $6MM/qtr as they lost cash flow. They are becoming irrrevelent and we have been through two windows cycles. I view this as a lucky opportunity to exit.
They are saddled with yesterday's portfolio---soft drinks, ice cream,household goods and railroads. They have no technology investments and little health care. They should underperform the S&P 500 on the way up and are vulnerable in a recession as their industrials are cyclical. You are much better off in an index fund.
If you subtract 2x current liabilities form current assets you get $6.65 of excess cash/share. The stock is selling at 5.5x EBITDA and 7.5x cash flow at $24.40. Capex is winding down after plant consolidations. UFPT is a sitting duck for a PE takeout at 8x EBITDA or $33/shr. In the meantime, we are building cash at $1.50/shr per year. If they get lucky and make a big acquisition, it could add $.70/shr to earnings.
It is truly unfortunate that they do not buy back stock when it gets cheap like this. I cannot understand why not and I have asked them. Somehow they think they need more float.
Sentiment: Strong Buy