Would be nice to have a feel for what the Mongolian people and their leaders think. On the one hand, it is a 100 year mine so they have to plan for the long-term but maybe they don't really want it? Hard to imagine not wanting it but it isn't completely unheard of for people to turn their back on development.
Interesting situation. If they report good results it has a negative impact on rate request. If they have bad results, it improves their prospects. I don't know how anyone could get uptight one way or the other; it makes no difference that I can see.
Oh yea. Timing is important.
I don't think they will have any trouble closing but they sure did have trouble closing the last one so I don't think one can say for sure until the money is in hand. Having said that, they can always just adjust terms, there is little question they can get some money.
Hope so. Spoke to IR who said that Zohar Zisapel (Chairman) had participated in the offering. Then again, he has so much money he can afford to be generous.
They may have just made a mistake in terms of thinking that the LOC was sufficient although that is a little bit hard to believe given the short time frame from the last conference call. From the last call:
Russell Frederick - Vice President, Finance, Chief Financial Officer
Yes, so the dynamics on cash in Q1 were—we used about $6 million of cash, and then we accessed $2.5 million of cash from our credit line for a net—I think the actual number is about 3.4 in terms of the cash balance coming down. We expect similar dynamics in our second quarter, so I would expect the cash balance at the end of the second quarter to be somewhere between $12 million and $13 million. So I think there is progress over time in terms of bringing the burn down, and subject to the comments Peter just made, we’re just going to continue on that journey.
I sure thought that there would be a run-down in AR as the South American receivables declined. To me that is cash in the door assuming they don't give similar terms elsewhere.
It is conceivable that they have a year or two surge in business following which things decline again. There seems to be entirely too much competition which is certainly good for consumers but not good for businesses. If anyone can earn a decent profit in the segment I think it is CRNT but I'm not sure anyone can and even if they did, Cisco and others would jump in at that time.
Would add that the Needham analyst doesn't understand the South American issues CRNT has been dealing with. I don't claim to completely understand them either but I'm confident I understand them better than him because I would have written about them.
Hard to say. They were saying that this was their "target price" and not necessarily "fair value." In other words they were saying we expect a bubble or most likely we think business is about to improve to the point where the share price will move to $8 a share. They also didn't say when this would occur.
Now they certainly should reduce their target price although I don't know that they will. There have been some negative events since they announced their target. Dragonwave and Aviat were tottering on edge of bankruptcy. Dragonwave isn't anymore. Aviat really wasn't tottering but they were hurting (and likely still are).
Certainly Needham wanted the business too. That is an incentive that can't be denied.
There is another article today. Noranda is saying they support the "compromise."
Noranda has joined a proposed settlement that would cut its annual electric bill of roughly $170 million by about 16 percent.
The New Madrid aluminum smelter had asked the Missouri Public Service Commission in February for more than a 25 percent cut in its electric rate.
“We support this proposal as an acceptable outcome in our rate design petition, and have no further comment until the PSC issues its ruling in the case,” Noranda spokesman John Parker said in an emailed statement.
The PSC has not yet ruled on Noranda’s rate design request, but last week commissioners indicated they opposed the aluminum producer’s proposal.
Noranda filed both the rate design and an overearnings case against St. Louis utility Ameren Missouri in February as part of a strategy to reduce its electric bill. Electricity makes up about one-third of the costs at the primary aluminum smelter Noranda operates in Missouri’s Bootheel.
The compromise on Noranda’s electric rate was originally proposed by the Missouri Office of Public Counsel last week. While the office traditionally advocates on behalf of lower rates for electric customers, the proposed Noranda rate would be offset by a small increase in electric rates for other customers, probably less than 2 percent.
Acting Public Counsel Dustin Allison, an aide to Gov. Jay Nixon recently appointed to the position as a replacement for longtime public counsel Lewis Mills, has adopted Noranda’s argument that utility customers will be worse off should the smelter close and leave Ameren’s system.
I can see that. Book value.
Assuming over-allotment is exercised, as I expect it will be, 25 million shares. Higher than what I expected. Don't think it is good news for existing shareholders but it likely sets a "soft" floor on share price. $40 Million if over-allotment not exercised but more likely around $45 million.
They just can't get their DSO down for some reason. Would sure like to know why that is the case.
Certainly is important. Will also be interesting to see if management purchases shares as they did in the last offering. The insider buys don't show up in regular reporting for some reason; imagine because they are a foreign company.
Cash wise. I don't know. I can see the need for additional equity and they said that in the last conference call too. Cash is up over last quarter too due to the one-time gain they recorded. The cash need is driven by the increase in accounts receivable. Not an altogether bad problem.
Share price decline is driven by overhang of share issuance in my opinion. Anyone who didn't see the share issuance coming wasn't paying attention. I thought they would wait until later in 2014 or perhaps early 2015. I was wrong on that count. Results though, were in line with what I expected.