Stupid low valuations don't happen very often these days. If Zispapel or other insiders don't purchase shares it might indicate that things aren't so stupid after all.
Only time will tell.
Would also encourage you to post over at Seeking Alpha the data that you say was ignored. You can do it in the comments to the article. Don't even have to write an article.
I would look forward to reading an article discussing the premiere nature of Dragonwave products and an explanation as to why sales and margin targets provided by management have been missed so regularly.
If a company went public in 2014 it would seem unlikely that a company would rate the shares of the private company.
The easiest way I have of checking prior upgrades/downgrades for particular firms is a Bloomberg terminal at a local university. Have not found another source as good but I imagine they are out there.
Well written. Only point I would disagree on is that all pure play microwave backhaul stocks are cheap. Dragonwave trades at a clear and significant premium to others. Aviat and Ceragon are in the ball park with each other.
When I say receivables need to be discounted, I mean this because of their extended nature. In other words for interest. This would not be GAAP.
Needham doesn't understand things any better than you or me. Also their $8 target was ridiculous.
There are some things not being spelled out completely just because no one ever talks about them. It resulted in a loss of confidence in management and nothing but time (or a large fund beginning to purchase the shares) can do anything about it.
There is only two good reasons for it to trade at 50% of book value and those are:
1) South America currency losses repeat and losses soar. Not going to happen but most folks don't know that.
2) Receivables aren't collectible. I don't buy that but I do think they need to be discounted somewhat.
Still, I can't get to a reason for it to trade so cheaply. Seems like some small cap value funds would be buying but if they are, they are buying small amounts.
They are more of an investment vehicle. They would buy anything if they thought it a reasonable deal.
Honestly I could see it when AVNW was down around $1-$1.2 as it seems like the sector needs to be consolidated and someone (whether it was them or someone else) needs to work toward that rather than just maintain the steady march to bankruptcy that they are all on. If the share prices get bid up it gets much harder to do. AVNW and CRNT are priced such that a merger might be doable but it is still a long-shot.
The only earnings report promise they have made was to the banks. They will file the 10-K by December 5th which will likely mean they can then file the 1st Q.
Whether it will go up to the bank deadline or not I don't know. Obviously they have missed every other deadline.
They are all over the place in terms of what percentage they buy based on a review of their web site. I think they would buy 100% of Aviat provided the price was right although I have no idea what that price would be. The truth is that someone needs to consolidate the sector in an effort to improve profitability but so far Aviat is the only one who has indicated a willingness to sell.
Not that simple. I tend to think $1.20-$1.30 is a reasonable bottom. Steel Partners has a track record of buying companies like AVNW and I think they will resume buying at that level (why they were buying at $1.80 baffles me).
Of course, if Steel doesn't buy or begins to sell it certainly would plunge. I don't know what their plans are.
Hard to imagine it going back down to $1 a share but stranger things have happened. If Steel decided to dump their shares it certainly would but I don't think they will.
Calculate enterprise value without the accrual for the lawsuit and then subtract out whatever probability weighted scenario you actually envision being the result.
Seemed pretty aggressive to not accrue the full amount given that it is in appeals but I have sure seen a lot of decisions overturned so it isn't like it is a zero probability event.
There was an amendment to their debt agreement (resulting from failure to file 10-K) last week. The deadline to file was in early December. Seems reasonable to assume the filing is still a couple of weeks away and they can report 1st quarter.
Hey Firehorse, Long time since I've posted. Good to see you still here.
It might mean that but these are new shares that have to be registered before they can be sold. In other words, if you were a qualified institutional investor and bought shares directly from the company the company wouldn't have to file registration statements when issuing the shares as is done with a normal IPO. It is faster but then you would be stuck with shares that you couldn't sell on the public markets either (in effect can only be sold to other rich people). Once the registration statement is filed, you could sell on the stock exchange.
Exony accepted shares that could not be sold in the public markets. Now they can be sold in the public markets but whether they will do is unclear. They probably will but the registration doesn't mean they definitely will do so.
Realized the tax adjustment was a non-cash item. They might be building reserves for potential tax claims. Would be interesting to know what it is for. Lots of things can pop up in the developing world.
Hate to agree but yea that is what business is typically about. Have to be terribly persistent and willing to grab the margin where you can. I do think CRNT management has that ability although they did so poorly in South America over the last year I should probably take it back.