Cray Inc. Message Board

the new Stratasys (post merger) already reported financials as a combined company in the last SEC filing.
Together the new entity reported $1.4 Million in operating cash flow for the full year year 2012. (Stock is trading nearly 2300 times Cash Flow.)

Carrying $822 million of GOODWILL is another great line item. (or how about the HALF BILLION DOLLAR increase in INTANGIBLE assets?)

All the hype and fluff every where you turn, but at the end of the day its the financials that matter. It may see $94 again with all the bulls out there, but eventually it won't live up to the hype at these levels.
It will one day be a "dime a dozen" product that you can buy at walmart from some little competitor. THe company makes it sound like the NEXT APPLE on the NEEDHAM Conference during the 1st quarter.
I doubt everyone will "have to have" a 3D printer any time soon.

These 2 companies really needed one another. SSYS probably told OBJET, we'll value you at $1 billion if you don't mind us valuing ourselves at $1.2 billion. (we get a premium because we're a public company).

Only problem now is OBJET shareholders will need to get liquid. 6 month period is over (December 3rd 2012 was close of deal).
I would guess SSYS will do an underwriting (like DDD just announced)) soon. (I mean that's how wall street keeps their lights on, raising money for hot hyped up sectors). Janney Montgomery initiating a buy this afternoon shows they are probably jockeying for position to get a slice of a deal.
Brokerage Firms aren't focusing (highlighting) on the statement of cash flow because it will make it harder to float a deal (raise capital) at these lofty levels.

SSYS is no DDD.
DDD has significant operating cash flow (enough to grow internally).
SSYS NEEDS an underwriting because the EARNINGS QUALITY is so poor.

there's a good chance stock goes to $41 without splitting, the financials get reported Monday, that may be enough

Sentiment: Strong Sell

I'm a sticler for details and after learning the top 2 execs own in part the entity Dealer Sites LLC, i dug a little deeper and found this article.
ONly problem is i can't find this transaction in any SEC disclosure. Don't know if TITN made a profit or lost money on this transaction? this is really too close for comfort IMO

from StarTribune:
6340 E. County Road 101, Shakopee

Price: $2,476,734 Filing date: 7/28/2011

Seller: Titan Machinery Inc. Buyer: Dealer Sites LLC

Property ID: 271030010

the more of the 10K I read, the worse it gets.
10K discloses top 2 Execs both raised annual salaries from $330k to $500k.

TITN lease 46 of 93 stores from entity owned in part by same top 2 Execs. $50million plus in lease contracts

from 10K: We extend credit to our customers, generally on an unsecured basis...if a large number of customers should have financial difficulties ....our credit losses ...operating results would be adversely affected. . delinquencies and credit losses generally would be expected to increase if there was a slowdown in the economic recovery or worsening of economic conditions

......in the event of a fundamental change, as defined in the ($150million) Indenture, the holders of the Convertible Notes may require us to purchase all or a portion of their notes for cash at a purchase price equal to 100% of the principal amount of notes to be purchased, plus accrued and unpaid interest.

typo...should be "not" allowing

they did get financings. $125 million long term note (received last year). they also have floorPlan debt. FloorPlan Payables increased by $137million to $689million. up 25% yoy.
the only reason they are sitting on $124 million in cash is because they borrowed $125million.(which is a long term liability).

As far as increasing sales are concerned: Negative Operational Cash Flow is the result of sales on credit. Favorable credit terms to the buyers creates sales. Making sales is great, waiting forever to get paid for the product from the buyer is what counts. (or in this case not counting).

if you go to their shop today and buy $100k tractor with no money (or little money down), they will report 100K in revenue, 18K in profit (income), but because you only gave them a nickel , then they didn't receive any operational cash flow from you. you walk away with a $100k product and they don't get barely any cash from you. what happens if your small business suffers and you can't make payment? they are beat.

Obama and the Banks are killing small business owners and banks are allowing anyone to get credit . its trickling down and trickling up. it sucks. TITN's tractor sales are like the housing bubble where people with subprime mortgages never paid for their houses and ended up foreclosing.

i don't wish ill-will on any of these folks, its just the state of the economy.

all there acquisitions may have all been suffering the same way. its sad. its unfortunate. i am not happy about it. i just warning people who only read the income statements and sales number and don't read the balance sheet and statement of cash flow.

thanks for heads up. i've been hearing that since $30. In most stocks there is always a risk of a squeeze on the bear side. Squeezes don't last forever though, eventually fundamentals factor into price of the stock. we'll see in the morning. one of us will be happy, hope its me lol

Great question. The company hasn't filed a financial statement since November and postponed their February report to approx March 4th.
Its too Opaque to buy this stock. They gave no guidance at the Needham conference.

Need to see Numbers. even the March report will only be numbers through Dec 31, meanwhile 1st quarter will almost be over on March 4.

There's approx 38 million shares out. Times $72 = approx $2.7 billion mkt cap.

if this company was trading at a forward PE of 27 they would have to have 2013 net income of $100 million. I don't see it.

At a fwd PE of 54 for 2013 they would have to have 2013 net income of $50million...i don't see it.

Reality is ....all we know is htat for the first 9months of 2012 they generated $2 million in operational cash flow.

$2 million...with a "M".........there's a penny stock DVOX that trades at a mkt cap of $10 million that generated $1.8 million for the most recent quarter.

Sentiment: Strong Sell

If you want to know my next short pick order my newsletter....i nailed this one on the long side and the short side...

your case is logical.
I don't agree with you though that this is a strong sell. A company that just did $36 million in sales and generated $3million in operational cash flow for 6 months has value.
There is a price (value) ( a market) for a business that is Profitable in a nightmare environment that you eloquently describe.
At the current stock price, market capitalization is around $10 million.
I wouldn't consider this business to be a sell at these levels. In my opinion this underlying business is worth significantly more.
Today's report showed a Profit for the Quarter. The CEO whispered it on the conference call and you had to get to about the 5th paragraph of the announcement to even find it.
NEtFLix generated negative $16 million in operational cash flow in their most recent quarter. ( save that for another day. My point is the market isn't always logical.)

At a penny a share EPS for quarter, annualize that out 4 qtrs and you have $0.04 in annualized EPS. at a PE of 20, its 80 cents a share 3-6-9 months out. from here that's a double. i think its a strong buy imho

Sentiment: Strong Buy

i think you hit the nail on the head