I don't think they will buy back many if any shares during this time frame - cash flows are still mostly negative and working capital requirements remain high.
And while the company upped its shipment guidance for FY14 again gross margins came down slightly qoq and will remain weak during Q4 as the company took down its guidance for high margin module shipments to the company's own projects.
The guidance amounts to just $0.23-0.24 in Q4 earnings which is below current estimates.
Given that the Hudson acquisition obviously performs at least as expected and STILL EBITDA covenants are getting violated management must have known at the time of signing that credit line that this would happen going forward. This deal should haver never happened at least on in the way it was financed. I would expect plenty of lawsuits given the fact that management concealed the EBITDA breach on the last call.
sorry - there ARE shares to borrow at least at IB - nice one - looking for $4.50 at day end
stock already giving up its pre-market gains here - with some early traders already trapped I would expect the shares to close unchanged or even lower. A shame there are no shares to borrow.
but end of quarter backlog was actually down 15% from June levels which does not bode well for near term results. Thanks to the new orders received in November Q4 will show an improvement in backlog but I don't think the Q3 revenue level will be sustainable in the near term.
I have no stake either but in case of hammer7881 I would imagine that he suffered a substantial loss from an ill-fated JOEZ investment and now has to seek some frustration relieve here
the tiny share count might propel this higher today but I would strongly advice to take profits or even short the shares if possible as really nothing has changed within the company.
actually they just recovered some of their bad debts and still operated at a loss
they simply don't generate the cash flows to serve the debt but this should have been crystal clear at the time they bought Hudsons - who in the world would finance an acquisition at 12% these days ???
they should simply file for bankruptcy to remove this overhang or consider a giant debt for equity swap - and remove senior management of course
that's utter nonsense - the creditors would end up with 100% of the new equity of the company in case of bankruptcy and might realize a very sizeable gain over time. Given the current 14% interest rate on the term loan the company will have to file for bankruptcy anyway over time as they don't generate the cash flows to serve the interest payments.
they might be forced into bankruptcy anyway - they don't have their fate in their own hands anymore. Wondering WHY they did not tell investors about the covenant breach during the last earnings call. There will be class actions for sure.
absolutely - this might finally help to get better financing terms - hand over the company to the creditors and most of the debt will already wiped out. Shareholders will lose big time here but the company will be on very solid footing then
actually they will have trouble to find a better deal given the covenant breach and the fact that they weren't able to get a better deal one year ago either with interest rates already at record lows then. At this interest rate they should have never bought Hudson. Now things are firing back on them. The shares should be avoided at any cost
Q4 guidance is just 5.5% above current consensus estimate at the midpoint and given the fact that this is a recent IPO with analysts initially lowballing estimates it isn't impressive at all. Even worse most of the reported Q3 upside is an one-item which should be excluded from core earnings.
That said report and guidance were solid but clearly not overwhelming at all and given the fact that analysts estimates were pretty low there's nothing to get excited here. Shorted above $39 and waiting for the shares to give back the entire upside during the session.