Yes, the selling appears to be related to the fact that the 4th quarter will be a weak quarter for BWEN. However, that is somewhat shortsighted, and if you can wait a few months (and what investor can't), things will start looking up. The upside is huge for 2014 and 2015. As for gearing and services, the numbers show that both divisions are at the bottom, so there is no reason to sell because of bearishness on gearing or services. Gearing has stabilized around $10 million a quarter and soon will be at breakeven. If they can just get a little bit of improvement of sales gearing, the company would benefit tremendously. I think sales will pick up for gearing because the demand is there. They just need better execution. Services also stabilized around $4 million a quarter, and the losses there are negligible for the company. I'm not too optimistic they will see any uptick in sales in services any time soon, but again it's not really important to the company from a profit perspective. Gearing is more valuable.
With the stock now trading at a significant discount to tangible book value, the company is a solid takeover candidate. As this is a manufacturing entity, there is no reason for this stock to trade beneath tangible book value, when it is making money. The assets are worth something - it's not some intangible assets like you see at tech companies.
Orders up big. Backlog up big. Balance sheet strong. Actual EBITDA (ex settlement) was $4 million (up nearly 50% quarter to quarter). 2014 will be huge for BWEN. Ignore the idiots selling and spreading false rumors. Same thing happened last quarter and like I said then the stock would recover, which it did and it went up 100%+ before correcting. Just hold on. BWEN's business is booming and management is executing very well.
400K shares is nothing. You should be buying into big dips, if you believe in the story. BWEN just closed a $100 million tower order this month. How soon we forget. Anyway, you are probably better off not looking at the price every day - it will simply fool you into thinking you are seeing something meaningful when you are not. At least take a look at a long-term chart before panicking on one sell off. After the last quarter, the stock was at $4.50 and plenty of people were whining. Then the stock went up 100% in a few months. Now that it's at $8, there is something wrong. It's still up 80% in a few months!
Yep, I got filled at $8 on a limit order. Never thought we'd see $8 again, but I'll take it. Earnings should take this back to over $10 and then next year it's $20+. Momentum hasn't even started here yet. Just look at the solar company stocks and the fundamentals in that sector remain horrid.
Repeat after me: BWEN is sold out of capacity for 2014. BWEN is sold out of capacity for 2014. BWEN is sold out of capacity for 2014. That's all you need to know to sleep well and wake up in 6 months and see the stock at $20+. Now that I've picked up some more shares at $8, its back to sleep for me. Enjoy the ride up, as I've been saying for 10 months already. See u all in 3 more months.
Yes, it's normal. Sorry, I've been here since $3 and have seen this type of correction many times already (and hundreds of times in other stocks that have been big winners). Earlier in the year it went to $6 and then crashed beneath $4. Did somebody know something? No. Because it then rebounded to over $10. Of course, the people who just whined sold and missed out on another double in the stock price. If they just walked away from the computer for a few months, they would have saved alot of moeny. These price movements mean nothing. Unfortunate, you are being influenced by a bunch of meaningless price movements, instead of looking at the big picture which you do seem to understand quite well.
You are joking right? At the beginning of the month BWEN was trading at $8. Everyone was really happy. Now that it's back to $8 the same price it was 3 weeks ago, you think someone knows something? Did someone know anything when it went to $10.40 for no reason? Just relax and stop focusing on the price so much. Nobody knows anything other than that 2014-2015 will be boom years for wind.
I've been in this stock since $3 and have been listening to the same whining on this board the whole year whenever the stock price does a little correction. It's almost comical.
Will hit $30, not because of fundamentals per see, but due to momentum (i.e. supply/demand of the stock). Look at how high the market has pushed up many formerly bankrupt solar companies in 2013, based on the outlook for 2014-2015. The prices are ridiculous from a fundamental perspective. I expect the same for BWEN, except that BWEN's fundamental's are relatively stellar compared to the solar companies. In solar you still have a glut of players, while in wind there really are not many companies in the game, and BWEN is the only small cap company to invest in for wind energy exposoure (as opposed to stocks like Vesta).
PS check my message after the last quarters earnings report, when I said to enjoy the ride up. It's just the start. People mistake a move from the low this year to $10 as anything, when in January 2011 the stock was at $25. I'll start thinking about selling once BWEN gets back to $25.
Yes, I believe the stock will hit $30 next year as momentum buying really kicks in with this name. BWEN is basically sold out of capacity for 2014, and soon will sell out for 2015. So there is very little operational risk with the company now. Management has great visibility on the business. When a manufacturer operates at full capacity margins go thru the roof and so I expect earnings to surge 2014 to 2015. Very few institutional investors even understand the potential here.
You can see the wind margins by looking at the latest 10Q where they break out operating margins by business segment. Tower business margins have been decent this year and obviously will be get much better with incremental volume. Any manufacturing business will see dramatically improving margins as capacity is filled. Simple mathematics. Nothing negative about the incremental $100 million order, unless you have been bearish since $3.
I'm sorry , but this is all scare tactics. Virtually all these Republicans and everyone else who is suddenly so anti-government, have made their fortunes by overcharging the government. If they shut down the government who is going to pay the bills at their businesses? Where do you think all the defense spending goes? Will the Republicans actually risk destroying their businesses, which rely on government funding, just to make sure people with pre-existing conditions can't get health insurance? It's possible these people are that evil, but still their greed will avert any shutdown.
Fat chance it actually worked in the simple manner you described. What do you think Schein just gave BIOL a list of names to call and did nothing else? What did they need Schein for? Anyway, this is a silly argument. I stand by my original remark that Schein no longer selling this says absolutely nothing about the technology or potential. In fact, BIOL is better off without Schein reps pushing this.
The only irrational people are those who refuse to ever change their minds, even though circumstances have changed. At $6, BIOL is an obvious sell. At $2, it's an obvious buy. Plus, you don't seem to understand how and why dentists buy some of these high tech products like lasers. It's got nothing to do with actually helping patients (which is a moot argument). It's simply a marketing tool and a dentist would have to be a real dummy to forego getting into a specific technology if the rest of the dentists in his area are embracing the technology.
I didn't say that. Schein thought they could sell it, just like they think they can sell alot of things (like dental implants). Some sell, others don't. You seem to think that nobody can make mistakes. We all have a crystal ball to know what will sell and what not? Sorry, it doesn't work that way. Everyone, including Schein, makes mistakes. They simply misjudged the market and what it would take to sell this. Schein does happen to overestimate the ability to sell anything many times. but, this is not the Schein board. The point is Schein dropping BIOL says absolutely nothing about the technology or the potential of BIOL's products.
The failure of Schein says nothing as this not the t ype of product Schein reps can sell well. Schein also has been a miserable failure when it comes to dental implants, so does that mean the dental implant system they bought (Camlog) is a bust? Surely not. Schein reps just can sell certain products, mainly those that are commodities. They do not excel at products that require more education and sales.
There is no doubt that laser dentistry is a potential huge market, and BIOL has a great product for this market. Execution has been poor for various reasons, but the brand, product etc. has significant value.
I agree with everything you said, except for the wait part. At $2, the risk/reward is good for a BIOL long as the valuation is simply too low in my opinion (I think it should be worth around $3 in a year). The company is not going bankrupt any time soon (there is no reason for the bank to close out the loans which are backed by receivables and inventory) and the next 2 quarters will have good sales. As everyone agrees, this is a real product with real potential, just terrible management. As such, there is value here for a larger company and surely management will sell if there is a serious offer. Rational minds can disagree on what that value is, but I think $2 is a good entry level and there is not much downside anymore.
Yes, $5 million is the tip of the iceberg, but once they raise that, the stock will go higher and then they'll raise more. No big deal. We're not talking huge money here - people make it sound as if this company is $1 billion in debt. As you say, the product is real, the demand is real, and the market is large. So this has all the ingredients for a good investment. If this were a private company, the valuation would be double where it is trading at now. The question is not if they need financing. They do. Most companies do. The issue is simply the valuation and whether financing the company at a particular valuation is a good risk/reward. At the current price, it is a good risk, and the company will easily raise the funds it needs to move the needle a bit further.
Good thing you are not a banker. The debt is a credit line. It's fully backed by inventory etc. Little risk for the bankers here and they'll roll it over come May, after the 4th quarter numbers are in.
As for profitability: They actually do sell it at a profit as gross margins are at 40%. So the product makes money. The trouble for shareholders is that the money has been wasted on inefficient marketing and bloated sales salaries. But, in valuing a company you need to take into consideration the value in a potential acquisition, where the acquirer will eliminate these ridiculous expenses. So what could BIOL make under an efficient management team that knows how to market the product? What would be the valuation in that scenario? That's the real question. Everyone can make up their own value and discount it appropriately. Personally, I think the company is worth around $3 ( discounted heavily), so I'll hold for that.
"Look this company has real products that have real needs and address really large addressible markets."
Sounds like a company that will not have any difficulty finding financing to close what is ultimately a negligible amount of money relative to the company current assets, and future potential.