I was too high on my expectations. It seemed that 1500 headcount reduction could result in about $100M of annual savings but it looks like they are targeting about $40M to $45M of annual savings by the end of the restructuring - around July 2014. EBITDA breakeven is the 1st goal, based on $440M of annual sales. This does not take into account any increase in sales and I would like to think they're being conservative on the savings because it would seem to me that a headcount reduction of that large would EASILY result in greater reduction than $45M of expense.
Ferrari_jeff: Unreal. You're a lying sack of #$%$ just like Moller.
This is huge. With the prior wording that I saw, it seemed like GTAT couldn't supply ANYBODY else with the ability or materials to do anything with Sapphire for CONSUMER PRODUCTS. If I misread that, this is very significant.
Exactly. OCLR never had a problem other than spending too much. The same revenue with 1/2 the workforce and there will be plenty of bottom line.
This company has A LOT of retail shelf space out there and they have a piece of a very high growth industry. I don't see any pullback lasting long.
I thought about this (long and hard). VPCO is the biggest pure-play public/tradeable entity and, hence, anyone that wants a piece of the ecig business will trade VPCO up. So, VPCO can certainly trade at a much higher multiple just because there's not really many other options to get a piece of the pie through. It helps that they give good presentations and are thinking/looking ahead. So perhaps your (original poster) "feeling" is valid
Thanks for the clarification. I saw that someone posted 4.5x EPS which did seem hard to believe. I think you're right though - in anticipation of future sales, the share price could just "backfill" (forward-looking, that is) into the future sares.
Your post is essentially a "this is going to the moon" post. Of course we all want that. However, the stock is up over 100% over about 2 weeks - Yes, I was buying at $0.77 on the day they announcing the recent dilution. But, fundamentally, the market cap is now about $160M on last reported sales of $25M and annual EPS of about $0.04. The sales and profit must ramp in order to justify any further move upward aside from investors loving that "rush". If BLU was bought out at 4.5x EPS then that would give a buyout price of about $0.16 so you have to put it into perspective and chill.
Impossible. You won't find it unless you at least know what the sales figures are for this quarter. If they are still at the same rate as last quarter then VPCO is getting short-term very overpriced but if sales went up 30% this quarter then you simple buy more at this price. Forget the P/E for now. I think just market share and sales #s are more important as long as net margins aren't negative. Though, no way to know until the next earnings report.
Omne, this is for you. The reason why you get the responses you do is because you are using this board as some sort of confession or shrink session. We don't need to know that you drank a 6-pack of hard cider one night, or that you take Prozac and Xanax. You're feeding the lions here and they're just having a blast jumping all over you. Anyway, looks like pre-RS, FREE is below $0.30 again. You never know here. The price could go back down to $0.20 then they'll do another dilution raise, then reverse split, then sink, then another raise, etc... FREE has a pretty bad rap list now. On the other hand, with an increasing BDI, if they could get the darn ships running again, they will do great. But they have to get the ships in the water.
Anyone getting a good idea as to how sales are going? Is Krave known as a "good" brand and is there a lot of shelf space taken up by VPCO's products? Maybe we won't know until the next official numbers. I would LIKE to think that some of this rise is due to investors "in the know" about how well the products are doing against Blu and the like.
fbrow10, don't take it to heart. Most of the folks here are very lost. The company may survive but that will only be due to dilution to get rid of the debt. At this rate, the dilution will push the number of shares to 400 million or more. Quite frankly, even for speculative investments, there are a gazillion more sound ones than this.
"better to make sure that the sell off has stabilized and we are indeed in an uptrend"
This is a day-traders attitude. Hey, I've done it too. I get it. But, think about it... by the time you confirm that it's in a uptrend, you'll be buying in 10% - 15% higher but then you'll be thinking "hmmm, i'm chasing, I'll wait for it to go lower". On the other hand, if you're buying when it's down, you're getting better value. If I think that VPCO is going to pump out 100% revenue growth within one year then why not just buy more now. Timing is very ineffective because it's very high maintenance, you're losing sleep, and you never know when to buy or sell. You're also probably allocating way too much % on the one position hence the need to squeeze every penny out of it and obsess over it. It's a portion of my portfolio and I can just let it sit and enjoy my time.
Exactly. Forget the "public" viewing. Just take the darn M400 out into a field, start it up, and fly the #$%$ thing while videotaping it. What the heck does he need the money for. It either flies or it doesn't fly. I agree - there will be NO public viewing event. This guy is an outstanding farce. Unreal.