Given the main reason for the stellar results I would expect the shares to already lose momentum during the session.
Retail investors can now trade oil futures I guess...the commissions generated will depend on the volatility in the underlying commodity and on potential upcoming competitive offerings
Sure, but this is not reverse merger company by the way. Nasdaq IPO in 2004 at $13. Numbers from the new oil business might indeed be unsustainable going forward though just like it has been the case with the precious metals business in 2014.
They generally do not give forward guidance neither in their press releases nor on the conference call.
This was a strong quarter by all means:
- revenues up 60% qoq
- Gross margin at 85.6%
- eps of $0.39
- Cash up 50% qoq
- sold an investment at a 400% gain for $31 mln - this will bring the cash balance up to above $81 mln
While the numbers somewhat remind me of what happened when the company introduced their precious metals trading last year, things look much cleaner this time. Given the initial boost from the new oil trading platform I don't think next quarter's results will show similar improvements but the company should be able to stay solidly profitable this time. Last time they just "bought" the revenues by paying huge commissions to "VIP" promoters - after they cut the initial incentives the promoters brought their precious metals traders elsewhere and revenues came down again - but given this quarter's gross margin increase things are seemingly different.
The stock looks pretty cheap here despite the 50% after hours increase. Next quarter's numbers will be crucial for the stock as it remains to be seen if the numbers are sustainable (or even can move up further).
The company isn't highly profitable anymore - Q3 seemingly will be a loss and if full year guidance will be achieved remains to be seen. Even if the new guidance will take hold, profitability will be down substantially from last year and only half of what the company originally guided for...
The company is out of cash and that's all you need to know I guess. The share price should be pretty telling also. This is a zero...
Now we know why the share price went up temporarily last week :-) 50% of the repurchase authorization is already exhausted and the shares remain at multi-year lows.
Investors should pay close attention to the fact that the company DID NOT retire the shares but rather decided to keep them in treasury which is highly unusual.
yeah - the quoted numbers were reported on 09/30 so I guess Boston Partners and Argent Capital and whoever bought into the shares at 60% above current prices last quarter look pretty dumb now.
It's no secret that I have been negative on the company for a long time now. It is no secret either that I have been right about Supercom from the beginning.
Perhaps you should notice that the company has guided below consensus expectations each time for the last few quarters or missed revenue expectations if not. This time they might not miss on revenues but margins will take a hit. Actually I found the CEO's commentary about their general observations on some of their markets or the health of the economy pretty disconcerting. Investors won't be too much concerned with Q4 numbers but rather with the potential outlook for FY17. I don't think that 25% earnings growth and close to 20% revenue growth will be achievable next year...
Perhaps they will disclose it when they finally publish their Q3 results but given SPCB's management I admittedly have some doubts.
This is not what they pre-announced. JOSB comps quarter-to-date are much weaker than guided and the company is bleeding much needed cash with the company's ability to service its debt obligations going forward seemingly stretched already. This looks more like bankruptcy than anything else.
Another bottom fisher that will get burned. Wait for the conference call as analysts will pressure management about the debt issue and a potential bankruptcy. Would expect the shares closer to $10 at the end of the day.
Perhaps you didn't get the message. The company is getting into trouble with its debt obligations going forward. Bankruptcy clearly is an option here. Should the current trends at JOSB persist the company won't earn anything next year and will have to restructure its debt.
They have $1.7 bln in debt - no one will buy them out. They will axe the dividend and most likely won't earn anything in 2016 given the current sales trends at JOSB. Q4 at least will come in as a major loss. Actually they will run into debt service problems...this looks more like chapter 11 than anything else...