Others Stocks to Consider: Gerdau currently has a market capitalization of $13.5 billion. Other stocks to watch out for in the industry include Companhia Siderurgica Nacional (SID - Analyst Report), with a Zacks Rank #1 (Strong Buy). Of two others, United States Steel Corp. (X - Analyst Report) and General Steel Holdings, Inc. carry Zacks Rank #2 (Buy).
I think folks here are over-reacting a little over the reverse split. It wouldn't be that bad if it did happen, and it'll be okay if it didn't happen.
Looking forward though, I'm cautiously optimistic for a few of reasons (a) the new steel plant would've been operational full-time (last quarter it wasn't effective the whole time, I believe) (b) the steel rebar prices have been going/holding up to the nice levels from last quarter (c) output from china's public plants will be limited, per government guidelines. That's my viewpoint, in my not-so-expert opinion.
Does anyone share my beliefs? If not, we should raise some of your questions and concerns at the annual shareholder meeting (on the 27th).
You can vote your shares against the reverse split. Personally, I don't think it doesn't matter either way. If it's not going to make a difference, in terms of being compliant, why bother doing the reverse split. I guess at the time they prepared the filing, there may have been a question mark around compliance, but I don't think that's the case anymore.
Pursuant to the instructions in Item 7 of Schedule 13G,
Fidelity Management & Research Company ("Fidelity"), 245
Summer Street, Boston, Massachusetts 02210, a wholly- owned subsidiary of FMR LLC and an investment adviser registered under Section 203 of the Investment Advisers Act of 1940, is the beneficial owner of 2,331,238 shares or 2.568% of the Common Stock outstanding of VELTI PLC ("the Company") as a result of acting as investment adviser to various investment companies registered under Section 8 of the Investment Company Act of 1940.
That might be a good question to ask them during the shareholder meeting. They should try getting on either the shanghai or hong kong exchange.
They're not asking to dilute the shares - they just want to allocate more out of the outstanding shares for stock options and such, which is standard practice at most public companies.
One of the items in the shareholder meeting's agenda is to consider a reverse split. In my opinion, it doesn't matter much whether we split or not because the stock still needs to be in compliance with 802.01B (minimum $50M market cap), in addition to 802.01E ($1 minimum share price). For example, if they do a 1:2 reverse split, the stock still needs to hold above $2 or so to meet the market cap requirement. Any thoughts, comments or suggestions on how we should vote on this?
Notice is hereby given that the Annual Meeting of the Stockholders of General Steel Holdings, Inc. (the “Company”) will be held at Level 21, Tower B, Jiaming Center, No. 27 #$%$ San Huan North Road, Chaoyang District, Beijing, China, 100020, on December 27, 2013 at 10:00 a.m., Beijing time, for the following purposes:
1. to elect the five members of our Board of Directors to serve until the annual meeting of stockholders to be held in 2014 and until their respective successors are elected and qualified;
2. to ratify the appointment of Friedman LLP as the independent registered public accounting firm of the Company for the fiscal year ending December 31, 2013;
3. to approve and ratify the amendment to our 2008 Equity Incentive Plan to increase the number of shares of common stock reserved for issuance thereunder to 5,000,000;
4. to approve a reverse stock split of the Company’s common stock, pursuant to which each stockholder will receive one share of our common stock in exchange for every two, three or four shares of the Company’s common stock owned at the effective time of such reverse split, with the exact ratio to be determined by the Company’s Board of Directors;
5. to approve, on a non-binding basis, the compensation of our Named Executive Officers as disclosed in these materials; and
6. to consider and act upon any other matters that may properly come before the meeting or any adjournment thereof.
Yes, indeed. It's nice to not have this compliance thing hanging over the head. Hope we'll hear the official word on this soon.
Looks like I just talking to myself, but I just realized the market's going to be open on Thanksgiving too. So, as long as the share price holds at $1.06 or above the next two days, we should be compliant for real. Let's go china steel!
Gosh darn it. We now need GSI to close at $1.06 on Wednesday and Friday to regain SEC compliance. I don't know about you, but I'm buying. If you're long, you should too. Thoughts? Comments?
As of last Friday, the average share price over the last 30 trading-day is $.98. If the stock holds at or above $1.05 for the rest of the week (excluding Thansgiving which is a holiday), then GSI will be in compliance again. Please no one sell below that threshold!!!
Here's the exact SEC requirement:
"The Company can regain compliance with the Pricing Standard if on the last trading day of any calendar month before January 19, 2014, which is six months after the date the Company received notice from the NYSE that it was not in compliance with the Pricing Standard (the “PS Cure Period”), it has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month. "
I've noticed that too about Yahoo Finance in general. I think Fidelity may have more up to date stats on GSI. If nothing else, one can always take a look at GSI's SEC filings.
Looks like a good cautiously optimistic report. I for one would rather see higher profits on lower revenues rather than the other way around. The actual production is driven by demand in housing and auto, which is out of GSI's control, so the drop in revenue estimate is understandable. I believe that it'll pick up though, especially with the new production lines.
The thing is every steel company has debt. Case in point, Arcelor Mittal (MT) has $60B, Posco (PKX) and Nippon Steel (NSSMY) have $32B debt each - it's just the nature of the business. The trick is getting your sales and profit margins up, and that is something GSI is getting better at.
Agreed. Someone should do a side-by-side comparison of GSI with other companies in the steel industry. In my opinion, that would not only give the company more visibility but also highlight its value.