actually you are looking like the moron here as you seemingly don't understand what is moving the stock. Earnings and revenues were in fact a bad miss as you have to take out all the one-time gains related to the AWN transaction and the 21 days of AWN revenues and earnings which were not accounted for by analyst estimates. Just read the conference call transscript and you know why - management pointed to severe execution issues when converting backlog to revenue. So this might go on for another quarter or two but once resolved the backlog will show up in revenue and might bring some pleasant upside surprises next year. On the other hand the company will face a new competitor very soon which will put further pressure on margins and revenues.
That said I guess there might still be better places to invest in the carrier space but this one has vastly improved its balance sheet by the AWN transaction and might have better times ahead. Investors might want to build positions around the $2 mark.
actually the "About Lorem Vascular" section of the press release would have been drafted in another way I guess and Cytori would have made clear about the Lorem belonging to Genting.
Actually the "About" section looks like a lie given the fact that the company was incorporated just two weeks ago and already claims to have a headquarter in Beijing and a series of offices in Asia
About Lorem Vascular
Lorem Vascular will be a leader in cardiovascular care with world-class regenerative medicine therapy. Headquartered in Beijing, with offices in Hong Kong, Kuala Lumpur, Singapore, and Melbourne, Lorem Vascular is committed to advancing patient care by transforming the treatment of cardiovascular disease by providing access to innovative medical technology to facilitate regenerative medicine, hospital and physician training and continuing medical education. The Company offers a cutting-edge regenerative medicine platform for treating such things as peripheral vascular disease, acute myocardial infarction and chronic heart disease.
miniscule market cap compared to peers - uplisting positive, capital raise positive - stock was shorted heavily in anticipation of this offering to price deeply in the hole. Looking for $5 over next few weeks. Great chance. Will happily add more shares if this goes lower.
what a shame of a company
the company would have denied the equity raise in the press release if they had no plans - the fact that the company doesn't address this all important issue in today's press release makes it quite obvious that indeed they WILL do this offering. And that's why the stock is acting poorly once again. Shorted at $10.
sure you can and 95% of the people still long the stock will hold it until trading ceases finally at some point in the future.
you truly must be joking - actually management was the last out of all solar related companies to admit to the dramatic business downturn. They wasted $100 mln in late 2011 for an ill-fated stock buyback which forced them to take on huge amounts of debt just nine months later. The waited six quarters to realign their workforce at least partly to the new order intake reality (negative). They didn't report positive order intake for a couple of quarters now. Despite most of their customers operating at full capacity again they failed to secure any orders so far. None of their highly touted new technologies is available to the market as of yet (and actually the market shows no need for them either)
So with the solar part of the business still languishing management turned to sapphire which proved to be an even bigger desaster with most of their once huge backlog now debooked amidst giant overcapacities in the market.
The recent Apple agreement isn't a sign of succes it was an act of desperation - with the traditional business being non-existent they had to look of other ways to generate revenues and cash. So instead of selling the furnaces for a great margin to one of Apple's contract manufacturers they are forced to take on all the risks of the transaction with Apple not even committing to any kind of purchases for lousy gross margins. Remember also that they will have to pay back the loan to Apple.
so what you call brilliant I call outright POOR management
obviously you are the only one on this board who can't
the company did price a surprise stock offering DEEPLY in the hole and even needed to attach free warrants to attract investors. This kind of financing usually is only being done by companies desperate for some cash to survive.
so the move stunned investors especially as the company only took in $70 mln, a rather small amount given the huge debt load. So while this small amount of money won't move the needle much for the company the shares issued are heavily dilutive to existing shareholders (up to 23%)
so one should wonder why the company made this move at a time when their business is rapidly improving and cash flows turning positive again - also the company has close to unlimited access to cheap credit lines from Chinese banks
the offering caught investors flat-footed and doesn't seem to make much sense in anyway - given the weak report and outlook from HSOL last week one might speculate that things are moving to the wrong side currently in the solar space.
stock currently trades at around 50% run-off value - most investors don't understand that the company's problems aren't related to cash but rather to capital levels which currently prevent them from writing new business. So currently there are clearly fears of bankruptcy priced into the shares which just won't happen - the run-off scenario is the worst case and offers 50% upside from current levels.
still looking for $5 within the next few days
in fact the numbers include 21 days of AWN business which at least one analyst on the call had not accounted for in his estimates. So "real" ALSK revenues look to be short of expectations here which makes good sense as management hinted to execution issues on the back office side of the business.
despite the muted revenue performance the company at least kept full year guidance metrics and even raised cash flow guidanc a little bit
but clearly the company has to improve going forward especially given the fact that a new competitor is emerging going into 2014
would short the stock here as numbers were mediocre at best
also there's an interesting management comment about ".(...)we are beginning to experience improvements in our business operations(...)" in the press release so earnings might surprise to the upside this time which would be a major event for this cash strapped perma-underperformer
while I am not sure if the common shares might have any value given the debt challenges of the company this one should experience major price appreciation tomorrow.
but be careful, clearly some smart guys knew about this financing in advance and positioned themselves accordingly - stock was already at $1.75 two days ago on very heavy volume.
they are just taking advantage of the greatly improved share price to take in some additional funds - remember that they have ZERO business apart from the Apple deal and old backlog deliveries going forward
as results and guidance actually are significantly better than expectations. Gross margins still lag behind peers though but with the closure of the old polysilicon plant is forecasted to increase up to the double digits starting this quarter. Would expect the company to earn a small profit in Q4 when translating margin and shipment guidance into revenues and eps.
while the huge impairment loss might #$%$ investors short term the closure of the outdated facility will actually improve earnings going forward as there will be no further depreciation expense on those assets and the company will be able to produce or buy polysilicon cheaper than before.
gross margins are projected (at the midpoint of guidance) to come in at 10% in Q4 which will be a 25% improvement qoq
the setback looks like a great chance for investors to get exposure to a leading Chinese solar play which will cross the break-even line next quarter. The impairment charge is one-time in nature and will in fact impact the company's future results quiet positively.
be careful though and play this using a scale in strategy starting below $3.70
nonsense - just read the transcript of the call - there's no path to a turnaround yet
you got it wrong - the Oaktree debt remains to be adressed by the company (I guess some investors were hoping for an announcement as of today). In fact the upcoming 20% dilution (4.45 million new shares by the way) is related to the costly settlement of shareholder litigation.
actually the company call wasn't a great success - especially the Suntrust analyst obviously was completely puzzled by the company's announcement to have again LOWER walnut supply compared to the already disastrous last year's season. Add huge marketing costs for the re-launch of the Emerald Snack Brand and Q1 will come in far short of current revenue and earnings expectations. Management promised better times ahead starting from Q2 on but clearly analysts seemed quite disappointed with management's statements and the lack of additional information provided.
given the great move in the shares and the dismal short term outlook I would expect sizeable pressure on the stock price tomorrow which might be fueled by cautious analyst commentary.
shorted the stock in after hours - looking to cover around $21 tomorrow morning
long-term investors might want to think about initiating positions if the stock indeed gets walked down aggressively tomorrow.
Form 4 filing with the SEC just out 20 minutes ago - great move
actually that's positive news as the company gets rid of $25 mln in debt for aggregate payments and stock issuance worth BELOW $20 mln - they will show a sizeable extraordinary gain next quarter due to this transaction.
at day highs already - wouldn't even care about dilution here as the company needed the cash to move forward - this will be forgotten in a few weeks
so just take a look at the share price this morning - what do you think why it is down after trading up in after hours and pre-market ?