If they actually have some expertise, and I'm not sure that they do, it is conceivable that they could sell out at premium to current share price. Toyota purchased a forklift parts manufacturer (Cascade) maybe a year or so ago for under a billion.
Not to mention that Toyota and other forklift manufacturers will ramp up if it actually becomes a profitable niche.
No, they aren't doing it to keep their electric bill down, they are doing it to improve the ability of Missourians to buy stuff. If that is greedy then yea they are greedy.
I wouldn't mind their asking for a lower rate provided the upside should aluminum prices improve go to ratepayers. They already have great rates and they shouldn't be able to lock in even lower rates just so they can make more money.
Imagine you are joking but their guidance is that they hope to get to EBITDA break even later this year.
Shooting from the hip but I think they are pretty close to break even when one factors in the shares they sold when NOR went public as well as the dividends. They certainly have not taken the bath than others buying assets in that time frame have taken.
Well say what you will but it isn't like HLF is a force for good in people's lives. Even if this is completely legitimate, they are taking advantage of people by delivering common products at obscenely high prices.
They likely did some things to get the price up for Apollo. New CFO might have bought a (very few) shares if he knew they wanted to get out in order to please a large shareholder. They spun everything very positively in that last conference call and now are pulling back some.
Always hard to say, but I think the company has been and will continue to be run for the benefit of Apollo. There is no Noranda family as the CEO indicated in the last conference call.
They almost certainly have enough cash/liquidity to get out to 2019. Not sure if they will be able to roll their debt at that point in time.
Would be nice if you would include the prior sentence where he said they had a very good track record of identifying profitable short candidates.
I was following this company when the shares were at 15 cents. He was similar and he isn't bright enough to be a particularly good liar. Imagine he is excited because he is now a multi-millionaire as are most of the employees.
There will be a number of insider sales in 2014 and probably retirements as well. What level the share price will be, I have no idea.
Is anyone like Toyota working on forklifts (fuel cell or otherwise?).
Pump away Garth. If you want to make "facts" up I don't care. Every point you made ranges from a fudge to an outright falsehood.
I've been very open about the fact that CRNT faces significant risks in South America right now. It may go badly but they do not face the virtually certain existential crisis that DRWI faces. Would be nice if people weren't so oblivious to the risks but what can one do?
Encourage anyone thinking about buying as a result of Garth's post to consider the following:
Timothy McDonald - Google the name and Dragonwave. You will indeed find a rich guy who bought a few shares of DRWI. You should consider that the guy has absolutely lost a fortune in Dragonwave and is not an insider.
Russell Frederick - CFO. Yea, one always likes to see the CFO buying but it is worth pointing out that he made significant sales less than a month before. These very small buys that you see here are company sponsored purchases that are at a 25% discount to market. My guess is that he plans to flip the shares at the first opportunity. Any Dragonwave employee can buy shares at a 25% discount to market and this is disclosed in the regulatory documents. You would expect that a discount plan like this would draw all sorts of employee participation but the sad fact is that only a few thousand shares are purchased every quarter.
Again, Russell Frederick sold 44,700 shares just a few weeks before the purchases referenced in the prior post.
Suppose political instability isn't necessarily the right description. That can be a problem but the bigger concern is a stable government that outright steals as both Argentina and Venezuela have been known to do.
Have to worry about South America. Currency risk in Argentina and Venezuela is significant but you also have to worry about collection risk due to political instability. Brazil might take a break in investment too with the World Cup coming up.
I think CRNT is going to announce new investment initiatives but they are going to need them to offset losses in SA.
Normally I'd say that the goodwill and other intangible assets needs to be subtracted for a company blowing through cash like this one and stop. Here though you have a company that simply isn't able to sell their product for much above book value as an operational business. Bottom line, the inventory is overstated too.
Hey, their receivables don't have much collection risk. That is something positive.
That is the $64,000 question. There really hasn't been any positive news other than the possibility of an electric rate reduction. Weird how company shares will take off for no real reason other than a few people deciding they want to buy it. Where were they six months ago when things were pretty much the same?
That is probably just about what I think but it is conceivable CRNT sees $2.50 before then if they have a big receivable go bad or currency issues are worse than what I'm guessing.
In a normal financial environment I would say 12 months for DRWI but someone will either give or continue to extend credit so 36 months is probably a good guess.. I would be willing to bet that if we had access to NSN's books we might that they have already written off the $10 million DRWI receivable.