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Clean Diesel Technologies Inc. Message Board

cdti17 13 posts  |  Last Activity: Mar 31, 2014 8:37 AM Member since: Jan 16, 2013
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  • Reply to

    CDTI- behind the numbers

    by cdti17 Mar 31, 2014 8:30 AM
    cdti17 cdti17 Mar 31, 2014 8:37 AM Flag

    That's wrong as is most of the drivel you post on this board.

    The Company also has a purchase agreement with Lincoln Park Capital (“LPC”), under which the Company has the right, in its sole discretion, over a 30-month period ending April 24, 2014 to sell up to $10.0 million in common stock to LPC in amounts of up to $0.5 million to up to $1.5 million per sale, depending on certain conditions as set forth in the purchase agreement.

    The company also has over $5mm in availability on its revolver. Read the 10-k and learn a few things.

  • Reply to

    CDTI- behind the numbers

    by cdti17 Mar 31, 2014 8:30 AM
    cdti17 cdti17 Mar 31, 2014 8:35 AM Flag

    Generated $2mm in cash flow from operations in the quarter and paid down the equity line. Liquidity is not an issue, but go ahead and short please.

  • Revenues beat and gross margins were up 80bp q/q. The miss on EPS was due to SG&A (cost $0.06 pre tax), severance (cost $0.13, pre tax) and taxes (cost $0.04). So if you add up the expense items, that cost $0.23 to EPS and they would have beat. Why they had to accrue taxes in the current quarter I don't know, but assume we'll find out on the call. The market should like that they are investing to grow the top-line and the top-line beat and gross margin improvement q/q are clearly meaningful positives.

    The short-term debt went DOWN by $2.1mm q/q, so they paid that down for some reason. On the positive side, that leaves more revolver availability for CARB related working capital in the first half of 2014. Liquidity is not an issue, in my opinion, for the foreseeable future because of the credit line. Moreover, they haven't even tapped the Lincoln Park capital equity line (at least they haven't disclosed that yet), which allows them to issue stock at the current market price.

  • Reply to

    Shares Short 4.4 million

    by smaycs4 Feb 25, 2014 2:15 PM
    cdti17 cdti17 Feb 27, 2014 12:29 PM Flag

    Not surprisingly, no discussion of the deal terms on the earnings call.

    Good earnings report in my opinion. Gross and operating margins were very good. Comps were solid given the tough environment and February comps were up over 3%, which is very good given the weather. None of this matters I suppose if shareholders vote in favor of the deal as currently proposed, but it does give some fodder for an activist to potentially jump in here to push for a higher price. The key obstacle for an activist is that Golden Gate, which owns almost 25% of the company factoring in the warrants has already supported the deal as currently structured.

  • Reply to

    Shares Short 4.4 million

    by smaycs4 Feb 25, 2014 2:15 PM
    cdti17 cdti17 Feb 26, 2014 10:52 AM Flag

    I'm not saying it will happen, but when the acquirer's stock adds over $1bn in value, it is logical to assume that the market thinks there are synergies and opportunities from this deal that weren't fully reflected in the acquisition price. Someone is making that bet...this can't be mainly short covering. Just look at the volume...it dwarfs the short interest.

    There is no other buyer that can derive comparable synergies from this deal. TIF can afford to do it, but they're expertise is in a different market segment.

  • Reply to

    Shares Short 4.4 million

    by smaycs4 Feb 25, 2014 2:15 PM
    cdti17 cdti17 Feb 25, 2014 4:44 PM Flag

    It could be causing some of it, but I don't believe the majority of the move. There has to be a contingent of investors (ie. merger arbs) that are betting that the deal terms are revised higher. I believe they are basing that judgment on the fact that SIG's stock has reacted so favorably after announcing the deal.

    I wish, as a ZLC shareholder, that we had received part stock, part cash or all stock. If one thinks through the various synergies in this merger, it wasn't hard to imagine that SIG's stock would react favorably to the deal. ZLC shareholders should have been given the opportunity to participate in those gains above and beyond the premium we received in the deal, which arguably ZLC could have achieved as a stand-alone company.

  • Reply to

    Shares Short 4.4 million

    by smaycs4 Feb 25, 2014 2:15 PM
    cdti17 cdti17 Feb 25, 2014 2:28 PM Flag

    They'd have to cover, but I have to imagine the vast majority of those shares were covered on the day the deal was announced. SIG isn't going to walk away from this deal and there is close to zero risk of them not getting the requisite debt financing.

  • Reply to

    why is the price going way beyond buyout????

    by golfmaniacwoohoo Feb 25, 2014 12:10 PM
    cdti17 cdti17 Feb 25, 2014 2:11 PM Flag

    A number of explanations have been offered on the board...what's yours?

  • Reply to

    question!

    by snosnoes Feb 20, 2014 4:30 PM
    cdti17 cdti17 Feb 21, 2014 12:00 PM Flag

    Merger arbs must be betting that the deal terms will be revised given SIG's stock increased so dramatically after announcing the deal. That's the only explanation I can come up with.

  • Reply to

    question!

    by snosnoes Feb 20, 2014 4:30 PM
    cdti17 cdti17 Feb 20, 2014 7:48 PM Flag

    I didn't understand that either other than hopes of a competing offer surfacing. I don't see any reason to believe that one will, but I'm holding on to my remaining shares for the time being. I view the risk of completing a deal with SIG as very low.

  • Reply to

    why dont touch 21?

    by snosnoes Feb 19, 2014 10:10 AM
    cdti17 cdti17 Feb 19, 2014 10:24 AM Flag

    There will be a spread until the deal officially closes (will progressively narrow over time). The spread is actually very tight for this type of situation, which reflects the low risk of completing the deal. SIG has a great balance sheet and will have no problem arranging the financing to get this done.

  • Reply to

    HUGE

    by martincriteo Feb 11, 2014 4:08 PM
    cdti17 cdti17 Feb 11, 2014 4:28 PM Flag

    fuel already preannounced the quarter.

  • Reply to

    Will bounce back to $40 tomorrow.

    by cpasific Feb 10, 2014 4:50 PM
    cdti17 cdti17 Feb 10, 2014 4:55 PM Flag

    Q1 guidance is awful, but expecting a miraculous pickup later on in the year...good luck with that

    Sentiment: Strong Sell

CDTI
2.570.00(0.00%)Apr 17 4:00 PMEDT

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