earnings won't be good but this is meaningless as all eyes will be on the bond issue. Q1 and Q2 earnings will be much better but for the stock to go up no further dilution is required
Cheap stock though
you are dumb - YNDX currently finds itself in a triple whammy of market share losses, cost inflation and forex headwinds and the company's forecast is for things to become even worse. All business metrics are showing signicant deceleration except for opex. Clearly things are going pretty wrong at YNDX.
why not but this is not the time to be long YNDX - their outlook on virtually all metrics was pretty much disconcerting to say the very least. It is no just forex or the russian economy. Opex is increasing brutally while growth is slowing down. Not good.
margin will be DOWN 9% in 2015 with 60% coming from forex
would expect the shares to turn negative here - nothing on the call to support the share price. Analysts will downgrade
conference call pretty ugly - margins will be down not only because of FX but also because of much higer employee and marketing costs. I don't get why anyone would want to own the shares here.
shorted in pre-market - people are buying the eps upside which is completely meaningless
So - what exactly did you like about the earnings and guidance - it is not just the fx headwinds - the whole business is under severe pressure as most business metrics are showing signifcant deceleration
so - what's exactly positive ? The retirment of the CEO or the warning of lower gross margins ?
In fact they will have to share the revenues from those east cost installations as Centrosolar won't perform their work for free I guess. And while RGSE will get at least SOME cash out of these contracts when finished they will lose even more money on each contract by using a third party installer.
Actually they are hiring Centrosolar to do the work they can't perform because they have no money and no supplies. Effectively they are passing their east coast backlog to Centrosolar in order to bill customers sooner to take in cash.
Given that their contracts are already net margin negative on a standalone base the money they will have to pay to Centrosolar will further weaken the earnings "power" of the company.
So what exactly does this mean to you "The company needs to, and intends to, raise additional financing to (i) position the company to convert its backlog, which as of February 12, 2015 is approximately $55 million and (ii) best position the company to renew its line-of-credit under favorable terms for the ensuing year. "
The release contains material new information which the company is obliged to disclose:
- suppliers refuse to do business with RGSE
- cash down to $1 mln
- capital injection needed asap to stay in business
- Sunetric issues
Effectively the release is saying: "we need plenty of cash within the next few days or maybe weeks otherwise we will have to file for chapter 11 soon".
For current shareholders it really doesn't matter what happens. Fresh money would dilute them beyond recognition this time while chapter 11 would wipe them out anyway. So the best move for investors is still to sell the shares here in order to get at least a few cents.
$10 mln would be pretty high, even $5 mln looks illusive here. They should file for bankruptcy and at least pay their creditors.
Sure - they might restructure the loans but this will most likely happen using a pre-packaged chapter 11 proceeding. But given the latest numbers I don't think there's any chance for the company to come back. Anyway shareholders will get nothing or if they are very lucky 5% of the restructured company.
they could rather pick some assets out of bankruptcy but I doubt there's anything of value. I wonder how much of the backlog really makes a positive contribution to cash flows. My guess is very little as the company has always lost money on its installations.
yeah - I guess especially encouraging was the part where the company discloses that they " experienced difficulty obtaining payment terms from certain equipment suppliers and other third parties which has impacted the company's ability to convert its backlog of signed contracts into revenue".
Cash has been cut in half to $1 mln since then and effectively the company is just days away from filing for bankruptcy.
You are wrong - look at the long list of retailers which have filed for bankruptcy as of late. Creditors rather take the beating instead of betting on a recovery that never happens. Given the revenue shortfall in Q4 it is quite clear that the current company has no future. Someone will pay something for the brands in the soon to be filed bankruptcy case and inventory will be liquidated just like all the others have done as of late, Shareholders will get nothing as usual.