It is amazing what FVE has achieved. Hard to find a stock that is down on such a big year for the market. FVE really messing up big time to be crushed in such a bull market.
This stock trades at a price to sales ratio higher than Tesla! It is still burning through cash with no end in site as evident by the recent equity raise. Sales growth have also failed to meet the high expectations needed for such a high valuation multiple. For those saying this stock is dirt cheap, what are you basing that statement on???
Tesla is doing over $2 billion in revs in the US alone and they can barely keep up with the demand as they have limited production capacity. Given how well the brand is resonating, Tesla could certainly ramp revenue quickly in the US and in international markets. WPRT target market is actually much more limited than TSLA so I disagree that WPRT will grow faster.
No, Tesla does not trade at 30 times 2013 revenue. Tesla expected 2013 revenue is $2.3 billion. Their market cap is $15 billion. $15B/$2.3B = 6.5X.
WPRT expected 2013 revenue is $160 million and their market cap is $1.5 billion. $1.5 billion/$160 million =9.4X.
WPRT trades at like 6-7 times revenue, similar to Tesla Motors. Everybody says Tesla is one of the most overvalued stock out there. If both WPRT and Tesla trade at the same multiples, fundamentally, why would an investor buy WPRT? It is highly unlikely WPRT can grow revenue going forward faster than Tesla.
TSLA gets a lot of bad publicity for being valued at like $15 Billion. WPRT is valued at like $1.5 Billion. Tesla does 10X times more revenue and cant even keep up with the demand. Revenue is growing like gangbusters and there are waitlists in international markets for their cars. Tesla has also won Consumer Reports best ratings out of any car. If Tesla is one of the most outrageously valued stocks out there, what does that say about WPRT?
With similar price to sales ratios, but Tesla clearly with great growth potential and brand recognition, why would anybody bet on WPRT at such high valuations levels. Arguably, WPRT is more grossly valued than TSLA.
It doesn't show a lot of confidence when management is selling in the mid high teens. The only buy is Douglas Kevin. Douglas isn't even on the mgmt team and therefore is not really an "insider". Also, just take a look at his key portfolio holdings, he has shown to be a horrible stock picker, with much of his picks down like 50% despite markets hitting all time highs.
FSYS offers a home nat gas refueling station which sells for like $8k when I checked a while ago. Not sure if this product is right to capitalize on nat gas usage in cars in the US. Also, seems like other than commercial tractor trucks, regular cars are not migrating to nat gas anytime soon. The trend in cars is electric and hybrids. FSYS specializes in small engines for lightweight passenger cars if I recall correctly.
So I don't see any major catalysts that will boost revenue growth significantly for FSYS. From a price to earnings point of view with slow/no growth, FSYS appears to be very much fairly valued.
Again and again we see how difficult FSYS 's business is. Margins are razor thin and they are subject heavily to exchange rate fluctuations and government subsidies. Revenue growth has also been poor and inconsistent despite the fact that FSYS is supposedly in rapidly growing clean energy space.
Other companies in the space like wprt and clne are likewise seeing a lot of hype but are some of the worst performers in the market and continue to raise equity and diluting shareholders in chase of the next big thing in nat gas that is just " around the corner".
I don't see a very compelling reason to buy here. Return on investment in this space has been very poor and I don't see FSYS margins improving much at all. Now if I saw explosive growth like Amazon or Tesla on revenue, it may not matter if they have razor thin margins, but I don't see revenue growth either. So what does that leave us with? Maybe a value stock? Value stocks trade at PE multiples of less than 10 so definitely not much upside here. Might as well go buy IBM instead.
What I dont get is why people believe the UCLA grad and panic and sell shares everytime he comes out with this negative articles when time after time, he has been proven wrong.
You would think he has lost all credibility by now, but I guess not...
selloff over the convertible was completely unwarranted, ANW should be back above 12 and close to highs for the year just like the general market.
If the company was that tight on liquidity, how did they announce a share buyback? I wonder if they even did any share buyback so far. Was it just an announcement to keep the stock from free falling?
there looks to be another lawsuit in the 10Q. ESC just cant get away from these lawsuits after already paying some $20million plus losses.
With market hitting new highs, Emeritus Senior living going up 10%, FVE is really lagging. Yes, there are issues with FVE, but it is selling at a steep discount to the industry and while the markets are at new highs, FVE is close to its lows for the year. With everything taking off, FVE has got to look appealing at these levels.
About 18 months ago, BX was in the mid teens while CG was in the mid 20s. How is BX now about to exceed CG in price? Does CG management just suck at investing, which is why they are performing the worst in the PE space or is the market mispriced?
CG has been one of the worst performers in the PE space this year. KKR, BX, APO all at or near their 52 week highs. Even with the recent runnup, CG is far from it's 52 week highs. So the rising tide has lifted everybody else a lot more than it has lifted CG.
4% interest rate. That is lower than my 30 yr mortgage!
Conversion at a $14+ share price, well higher than the current stockprice.
This does not appear to be a highly dilutive deal as the stock drop would have suggested. Shipping companies like Dryships that are issuing tons of equity at lower than market prices havent even seen such a drop. Looks to me like this news isn't negative and the stock price should recover quickly, especially if they have a good reason for the funds on their upcomming quarterly call.
I can only guess the interest will be super low on a convertible as compared to issue regular debt.