Yes. Nickel prices really do seem to have finally stabilized too, and are up for the first two months of the year. Hopefully a trend of higher prices will make cost-conscious customers move from delaying orders to submitting orders before prices rise more.
sub $50. Because the long-awaited bottom is in...
"Revenue and earnings for the second quarter of fiscal 2014 are expected to improve from those of the first quarter of fiscal 2014, but the company may still experience a net loss for the second quarter. Given the increase in backlog and the feedback from customers, the company currently expects financial results to improve over the course of fiscal 2014. "
It does seem to be an industry-wide problem. How much return on capital can you expect from moving and selling commodities? But I am figuring that their leverage means return on equity is much higher than return on capital, and hoping their new CEO changes a culture that is probably complacent after 15 years under the same CEO.
And the ADVP shares I owned before CMX bought them and CVS bought CMX are worth 10 times what I paid. But that doesn't mean some guy hyping a stock by making up percentage gains is either correct or acceptable.
Not correct. Up almost exactly 100% since CVS closed on CMX on March 22, 2007, a date where CVS had a closing stock price of $34.31.
The CFO said there was margin pressure in the fourth quarter too, but they managed to earn $0.55. From the fourth quarter conference call: "Price competition in our market persisted in the fourth quarter of 2013. We anticipated that margins as well as discounts and rebates will continue to be effected by this current trend."
Stock price continues to go up on (relatively) high volumes as market players recognize that ongoing warnings of "continued price competition" doesn't seem to mean "worsening price competition."
There is always margin pressure. The question is how effectively the company reduces costs and increases sales to deal with it.
The CFO said this during the third quarter conference call: "Price competition in our market persisted in the third quarter of 2013 and we anticipate that margins as well as discounts and rebates will continued to be affected by this current trend." Yet look how well they dealt with it in Q4.
I guess we'll know more after the conference call.
Q4 eps of $0.55, +41% year over year. Talk about a snap back in margins!
This in a stock with $1.41 in trailing earnings, or a 10.1 PE.
Share price should be going vertical too!
After the close Friday:
Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Four of the six members of the Board of Directors of LSB Industries, Inc. (the "Company") that are not deemed "independent" under the New York Stock Exchange rules have resigned as directors, effective January 17, 2014. The directors who resigned on January 17, 2014, are Robert C. Brown, M.D., Steven J. Golsen (Chief Operating Officer of the Climate Control Business); David R. Goss (Executive Vice President of Operations); and Tony M. Shelby (Executive Vice President of Finance and Chief Financial Officer).
I've never read a takeover proxy statement yet (and I've read at least a dozen) where the acquiree didn't ask for a higher price than the acquirer first offers. I guarantee it has happened here too, though there is no guarantee the acquirer will pay the asking price. Then they go back and forth about the price with their lawyers and their investment bankers. It takes time. Before the two sides can finish that process, they need to agree to a confidentiality agreement, as they announced today, so the potential acquirer can see things like the acquiree's internal projections of out-year sales, earnings and growth.
So yes there is upside past $20 in a takeover situation, and yes the odds of a takeover increased today - DFZ is clearly not opposed in principle to a takeover and is still heading down the path.
I had a stock, ticker TRCI, which received an unsolicited takeover offer for $5.50. After 2.5 months with no word, I'd sold all my shares, and then TRCI accepted the revised offer at $7.20. +31% because the Board didn't accept the first low-ball offer, and I missed it.