They already pre-announced revenues of $3.5 mln and a mind-boggling cash burn of $25 mln in connection with the offering in a SEC-filing last night.
FXCM is essentially buying the customers from Citi for a rather small amount, otherwise the purchase price would have been disclosed. But this is not a material transaction as the transaction volume of Citi's clients is obviously a tiny fraction (around 8%) of the retail volume currently generated by FXCM clients.
As PLUG is in fact guiding for a record revenue quarter, revenues will have to be at least $21.5 mln so my early guess of between $15-20 mln looks clearly wrong. But again, if they had numbers above analyst estimates and progress in bookings and margins they would have put this in the press release. Still believe that revenues will come in substantially below analyst estimates and bookings and margins to disappoint.
Perhaps management should care for their business instead of going on bus tours.
Frankly I don't get why the shares are up on this news. Dilution will be above 30% including fees after all is said and done. Lincoln Park is the only winner here.
This is a small contract for a pretty small distribution centre and they are hopeful to get 5 or 6 more out of the hundred sites. The equipment has already been delivered and revenues will be recognized next quarter. So this is all past news.
Dream on. They should have eliminated the dividend to save $100 mln annually. But of course that's bad for DRYS which desperately needs the cash. And they should ask DRYS to pay back their loan.
This offering is effectively a DRYS offering.
The company is burning cash like hell to acquire market share. Costs are projected to explode going forward. Sell
Use your brain at least this time. The sole reason he is buying shares is to ensure ongoing control over ORIG as the DRYS controlling share will most likely be diluted to below 50% in the offering.
There will be plenty of dilution for outside shareholders of course.
Well - it is all in the news. Just read it. They will file a pre-packaged chapter 11 and emerge soon after that as a healthier company. The old shares will be cancelled and for every 1,000 of your old shares you will get 31 new shares of the new HERO plus some free options to buy additional shares.
After that current bondholders will own 96.9% of the company and current shareholders will own the remaining 3.1%. That's it.
From Q4/FY14 report:
"The Company shipped 957 GenDrive units and had GenFuel installation sales associated with eight sites during the fourth quarter of 2014 compared to 279 GenDrive units and no GenFuel installation sales in the fourth quarter of 2013. Total revenue for the fourth quarter of 2014 was $21.5 million, comprised of $12.2 million for product revenue, $8.4 million for service revenue and $0.9 million for research and development (R&D) contract revenue."
So this time they shipped less units and I don't see 8.4 mln dollar in service revenue either. Add the revenue recognition issues and Q2 revenues might come in between $15-20 mln compared to analyst expectations of $25 mln.
Obviously Cantor Fitzgerald went straight to work :-) Very nice gain so far. Staying short here.
Would expect downgrades tomorrow. Gross margins took a huge hit and the company does not expect them to improve materially for the rest of the year. Analysts will have to lower their estimates pretty significantly.
Moreover company threatens to evaluate significant investments to get into new business opportunities. I guess they should first record some profits and cash flows form their core business before wasting even more money.
With an ongoing quarterly cash burn around $10-15 million there won't be much money left for any kind of investment a few quarters out.
The shares look as worthless as ever here.
Hopefully not. The tanker market has low entry barriers and a great rate environment wil inevitably lead to more ships entering the market. Most of the current environment was caused by recent OPEC actions. If the volatility in oil prices comes down so will tanker rates.
So Frontline will use their current cash flows and the proceeds of the ATM offering to order some new tankers which will have a lower break-even point and therefore will be better prepared for tougher times. Once rates have turned south the company will be merged into Frontline2012 with very little consideration for current FRO shareholders.
This contract has been announced already a dozen times by Andy so I don't get why the company is putting out this pr