The earnings of TRIB in recent quarters had been stagnant and below estimates and there was creative accounting involved with respect to the actual R&D expenditures. TRIB needed to raise cash because its liquidity has become stressed (only $9M left at the end of the last quarter). I doubt TRIB has significant acquisitions in mind. It is now opportune time to raise cash. The cash will be used for R&D and marketing, management compensation, retainment of dividends, and (if the share price drops precipitously) for stock repurchasing. The pending earnings call will be most enlightening.
You have been posting half-baked misleading posts on both the PBR and VALE message boards. Which miner will be profitable even at $30/ton seaborne iron ore? If you want to bash, be smart at it...
Iron ore with 62 per cent content at Qingdao rose 1.4 per cent to $US54.82 a dry ton on Thursday, extending Wednesday's 5.9 per cent rally, according to data from Metal Bulletin Ltd. It dropped to $US47.08 on April 2, the lowest level since 2005, based on daily and weekly data from Metal Bulletin and annual benchmarks from Clarkson Plc. The price should have a "fairly strong floor around $US60 once we get through this period of volatility," Robert Mead, a Sydney-based money manager at Pacific Investment Management Co., said at a briefing in Australia on Thursday.
"SAN JOSE, Calif., July 29, 2013 /PRNewswire/ -- Extreme Networks, Inc. (Nasdaq: EXTR) today announced the appointment of Edward (Ed) T. Carney as executive vice president of product and customer success, where he oversees the development of market leading network platforms and shapes the customer experience by leading Extreme Networks' global service and support organizations."
"SAN JOSE, Calif., April 23, 2015 /PRNewswire/ -- Extreme Networks, Inc. (EXTR), a leader in high performance networking, today announced the appointment of Eric Broockman as CTO and Executive Vice President of Engineering, adding to his current responsibility as CTO, a role he has served the past 14 months. Broockman holds numerous US patents, is an active inventor, and was a National Science Foundation Fellow......
Edward Carney, Extreme Networks' executive vice president of products and customer success, is leaving the company."
Because of the weakness of the euro against the dollar, I'll be surprised if VSH makes the numbers this quarter.
PBR announced the suspension of its dividends so many funds that are in dividend paying stocks will get out. Because of that, the stock will likely trade down for a few days. After that, it will depend on the price of oil and the value of the Brazilian real versus the dollar.
Because of the following:
1. Vale announced that it had sold record amount of iron and while its expansion plan is on track there are signs that the Australian giants are slowing their own expansions.
2. The price of iron rose well above $50.
3. The Brazilian real has recovered somewhat in recent days.
4. VALE's price is somewhat influenced by the price of PBR because of Index buying. PBR has recovered well from its recent low.
Read the following:
"The price of iron ore has soared in offshore trade as BHP Billiton signalled it would slow its planned expansion, the first sign of a major miner blinking since the bear market began 18 months ago.
At the end of the latest session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US52.90 a tonne, according to numbers from The Steel Index, up 4.1 per cent from its prior close of $US50.80 a tonne.
Meanwhile, the Metal Bulletin price for iron ore delivered to the port of Qingdao, China, surged 5.9 per cent to $US54.04, its largest one-day gain for over two years.
The commodity hasn’t seen a red session in the past five and is enjoying its best two-week streak this year as it jumps 13.3 per cent from the 10-year low it reached earlier in the month."
If Extreme is sold by earnings day, the most we'll get is $3.5/sh. Note that Enterasys was bought by Extreme for about 60% of Enterasys' revenues. Enterasys was a troubled company. Because of its poor recent performance and negative tangible book value, Extreme won't fetch more than 65% of its present $550M revenues. Extreme before the Enterasys acquisition had about $2/sh cash, no debt, revenues of about $280M, and was slightly profitable. It could have fetched then $5/sh. Extreme starts to remind me of the old Tellabs (TLAB) that was sold for only little over its net cash.
If somehow Meyercord manages to stabilize the company and show some growth, Extreme will fetch $5 and more. However, there is no reason to believe that Meyercord will do better than the previous 5 CEOs that Extreme has had in the last decade. There is not much in his background to indicate otherwise.
Today Meyercord was named Extreme's CEO replacing Berger. Berger was named Extreme's CEO in 2013 replacing Rodriguez. Rodriguez was named Extreme's CEO in 2010, replacing CFO and acting President and CEO Bob Corey. Corey replaced former CEO Mark Canepa in 2009, and Canepa replaced the company's first chief executive, co-founder Gordon Stitt, in 2006.
Was Meyercord our Chairman of the Board and now also our CEO responsible for the Enterasys acquisition? Did he recruit Berger for the CEO position (which post factum proved to be a very poor decision)? He should repent and be very careful about what he says going forward..
Smaller, more agile company that should be able to take a leadership role in an industry that is undergoing huge transitions.
Total inability to make decisions. Tries to do everything and accomplishes nothing. No sense of urgency. No forward action. Always looking to the past and protecting what it has with no regard to build market share or growing the customer base.
Hopeless and inept management. IT organization is a nearly totally dysfunctional organization. Internal networks are down more often than not. Support infrastructure rarely works. Tools are hopelessly outdated and lack investment.
To top that off, there's the ABSOLUTELY FATAL MERGER/ACQUISITION DECISION TO BY ENTERASYS. In the world of acquisitions, the 3 most important factors are culture, culture, culture and in that regard the two companies were absolutely and almost violently on different sides on every, I mean EVERY, matter big and small. I can think of NOTHING the two did the same.
Finally there's trust. Everyone, and I mean everyone, that I know that joined the company in the last couple of years were flat out lied to about what we'd be able to earn work for the company and as a result employee reaction ranges from rage to shock when the first couple of quarters go by and you look at your options and no hope of bonuses and no management decisions/direction that could possibly lead to such. In the end, its just a huge cut in pay that most can't afford and so the panic, rage and anger sinks in. Everyone is looking for a way out.
Advice to Management:
Massive cutback in product line. Focus just on stackables for the Education market, exit all other businesses and products. Then kill staff not aligned to that mission. Bet everything on SDN for growth from that point of strength. Find a buyer.
1. The poor results from BHI scared investors in the oil service industry.
2. Concentrated efforts by the likes of Barrons to tell you that offshore drillers are not an attractive proposition YET.
Let me remind you that called Meyercord "corrupt" because he had sold 30,000 shares in February just before the warning release that caused the stock to crash...
Like Berger before, now Meyercord is "extremely excited" about the prospects of Extreme. I do not like such bombastic statements, especially given the history of Extreme.
//I am extremely excited about the opportunities for the Company and believe that the quality of Extreme's highly talented team, impressive technology and large base of loyal customers can generate future growth and profitability," stated Meyercord.///
I have been wrong. I thought that Berger would continue until Extreme is sold. Now Meyercord who is the chairman of the board assumes the CEO position as well. Since there is no mention of recruiting a CEO from outside the company, I tend to agree with you that Meyercord will be short term until the company is sold. The questions are, given the poor performance of the company who will buy it and for how much? Will Meyercord be any better than the 5 CEOs that have preceded him in the last decade?
I'm pleased that Berger is gone but I have no hope of getting more than $5/sh in a case of a buyout.
So far, the stock has reacted mildly positively to the news.
"The price of iron ore has risen for a third consecutive day on the back of fresh stimulus in China, which could help revive flagging demand growth from the world’s largest consumer of iron ore.
At the end of the latest session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US50.80 a tonne, up 0.2 per cent from its prior close of $US50.70 a tonne.
Last week the commodity enjoyed its best run of the year with gains of almost 7 per cent and it now trades 8.8 per cent above the recent 10-year low of $US46.70.
The latest session was the first since news broke that the People’s Bank of China had reduced the level of funds that commercial banks must hold in reserve by one percentage point in a bid to stimulate lending. It was its second such cut this year and largest since 2008.
While the news is seen as a positive for commodity markets, some analysts have queried whether the move is a hint that the Chinese economy is in worse shape than the market currently perceives.
The brief iron ore recovery has also come just as market watchers turn more bearish, with a flurry of analyst downgrades seen getting them ahead of the pricing curve for the first time since the bear market began.
There is a broad expectation that prices will soon return back into the $US40s and perhaps lower, but for now beaten-down miners are receiving some respite, even if most in the sector outside Vale, BHP Billiton and Rio Tinto would be losing money at current prices."
The explanation given by Zacks for their downgrade is particularly strange in its timing and logic. It is almost like Zacks wants to cap any possible recovery in the stock price. VALE is very sensitive to the price of iron and there has been (perhaps a temporary) recovery to $50/tone in the last couple of days. By now all the analysts have capitulated and some even predicted that price of iron will drop below $40. As is often, when all the analysts finally capitulate on a cyclical stock that marks the bottom for the stock. Nevertheless, I believe that If iron drops below $40, VALE will drop below $5. Perhaps Vale's nickel operations will support the stock.
After all that has happened do you have any reason to believe that there will be significant sales to Lenovo?
There were 2 items advanced by Berger upon the acquisition of Enterasys :1) $30M synergy savings within a year and 2) 10% increase in sales via Lenovo within a year. The synergy has not manifested itself and sales to Lenovo are minimal. The analysts and investors that believed Berger have been sorely disappointed. Is Berger merely unfit for the job of a CEO, or is he simply a conning salesman? Perhaps both.
China is by far the largest importer and consumer of iron ore. However, Its consumption is thought to have peaked because construction has peaked and more scrap steel is becoming available in China. The iron ore surplus is expected to rise into 2018 as more production comes online. While Fortescue won't produce more than its current rate of 165 million tonnes a year, BHP is apparently still intent on lifting from 245 million tonnes to 290 million tonnes by mid 2017 and Rio to 360 million tonnes. Vale plans to expand from 340 million tonnes this year to 450 million tonnes by 2018. Roy Hill is on track to load its first shipment of ore for export in late 2015. The Roy Hill Project is a 55 million tonne being developed in West Australia’s Pilbara region. Even if the junior iron mining companies outside China close down, there will still be excess supply. The world can not use as all the excess supply that is coming online. Therefore, IMO, the price of iron will stay below $50/tonne for years to come. If Vale manages to get its breakeven (including freight) to below $40/tonne and if its 1/3 of operations that is not iron is profitable, Vale will be doing OK and the share price will rise to $10+.
"Reputation of quality and leading edge products"? Perhaps, but why have the sales been languishing? Why are the insiders loath of accumulating the stock? Why isn't HLIT getting much analyst following despite claiming for years now to be "the worldwide leader in video delivery infrastructure"? Is this claim patently false? Is being "the worldwide leader in video delivery infrastructure" not necessarily tantamount to being much profitable?