the fundamentals are bad. Low Green coffee prices are the culprit. A $5 buyout price is possible
A new Seeking Alpha Article published yesterday, mentions that KMI is getting so cheap, it may be featured in the author's "dirt cheap value portfolio" as a replacement component.
this guy is sharp. found his commentary on another website and thought it was relevant to show it:
"I want to give you a different outlook on your LUB investment. It is a long term investment that if watched daily/hourly as a trader will make anyone crazy.
The Pappas roughly 30% plus ownership is a good and bad thing. The large stake combined with a hand picked board allows them very wide latitude to do as they see fit managing the company. That is a bummer for someone like yourself who wants aggressive changes from an older CEO who is having fun.
Activists have no interest for good reason. It has a tiny market cap and the CEO, board and buddies own close to half the outstanding shares of the company.
On a brighter note, your long term investment is fairly well aligned with management. I also believe it is a big positive that Hodges Capital is adding shares. They have an amazing track record of success investing small caps that hail from Texas.
There is not much investor enthusiasm for a stock with weak brands, zero growth and an entrenched CEO who has rarely if ever shown much interest or concern for other shareholders.
It does surprise me a bit that Pappas is satisfied or comfy knowing that he is responsible for the awful performance of the company over the last decade or so.
I am also surprised that Hodges Capital continues to increase their stake while saying nothing about how the King operates our company with no regard for all shareholders.
Why continue to own the up and down contract culinary services division. What are the EBITDA numbers for this division each year over the last decade? It is kept a secret because the results are dismal. If the EBITDA is 1 million per year then sell it for 5-6 million and reduce the debt and simplify the organization. If the EBITDA number is 2 million then double the sales price and pay down 10-12 million.
As a shareholder, I do not want the company to build or open any corporate stores. Spending money on selec
There is no way that FSYS shareholders will vote yes to getting acquired for 1/2 the price that their shares were ,before last November's tender offer. That would be absolutely ludicrous.The fact is, FSYS can do just well in the low price oil period, just fine on their own. They are producing $10 million of EBITDA per year, have no debt and almost $70 million in cash and short term investments. WPRT on the other hand, definitely needs a cash infusion because of their high debt levels and lack of profitability. The only people that win on this deal are WPRT shareholders, and they win big at the expense of FSYS shareholder's, who lose big. I thought most transactions had to produce a "win-win" scenario, before a deal could be transacted. I guess I am sorely mistaken.
I need to get something off my chest here and it revolves all around $FSYS. I realize this ticker was eliminated this from the dirt cheap value portfolio over a month ago, due to its pending takeover by WPRT...but things simply are rotten in Denmark
Let me explain: Prior to the early November news of the takeover, FSYS was trading at about $7..today it trades at about 45% less or near $4.00 mark, based on a 2.19 stock exchange rate into WPRT shares. How many takeovers have you heard about, where the takeover price is actually 45% less than the pre takeover price?
It is highly irregular and frankly never happens. Hopefully FSYS shareholder's will vote this dubious, crooked deal down. The fact is FSYS could easily weather the storm of low fuel prices, because of its pristine balance sheet. It has no debt and about $70 million in cash and short term investments. It is also cash flow positive, as the company expects fiscal 2015 to generate EBITDA of $10 million.
The only winner of this deal is WPRT. They are debt heavy and are burning cash (no EBITDA for them). They need FSYS way more than FSYS needs them.
The bottom line? this deal needs to be stopped in its tracks, and stopped hard. FSYS was a $30 stock a few years ago, getting $4 today is complete #$%$.
a very cheap stock price is just what the Dr. ordered for top management. This will enable them to purchase the 66% of the shares they do not already own, and take it private. The financing will be a cinch, especially considering the real estate value, will exceed the required loan amount. How can you lose with that proposition? In a year or so, management could sell the company, at three times the purchase price, via a IPO
GMCR is JVA's ( Coffee Holdings Company Inc.) largest customer. Look for JAB to also acquire those folks in a $60 million deal, according to the latest Seeking Alpha take.
we won't know anything until the 10K is filed next month. The income statement will show the new # of shares outstanding
Buy the dip! This one could easily fetch a 50 cent premium in a buyout deal. The shares have pretty much given back all of yesterday's gains and then some, after a 15% selloff.
The drop in oil prices is what is tanking these shares. As a result, a new bidder will come forth with a $6 cash bid offer. The stock has just gotten way too cheap and somebody will exploit the situation. The spread between the cost of gasoline and natural gas is still the same. That's what counts. In addition, the benefit of producing less emissions form natural gas burning is paramount.
the whole coffee sector should get a nice jolt today. That huge premium is almost unheard of. I bet Einhorn is feeling mighty low about his short position. We could see JVA jump as high as 20% today in reaction to the GMCR news.