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.
This contract has been announced already a dozen times by Andy so I don't get why the company is putting out this pr
Given the huge run in the shares within the last few weeks this was pretty much expected and the cash burn still looks staggering. Would expect a secondary offering later in the year.
I am actually aware of the cash position and the cash burn which makes an pretty easy calculation. Shares are down nicely from my after hours short entry.
Management does not know what will happen to the Nokia partnership as Nokia will review this in light of the ALU acquisition. Might end up with Nokia winding down the entire relationship over time.
From the call:
Had to do "some course corrections" in light of the current business environment.
Seeing severe weakness in the Nokia channel that is causing the poor guidance for Q1 and the entire FY16. Gross margins will go up though as the Nokia channel has been in fact a drag on margins since the very beginning due to a profit sharing agreement.
Company is trying to bring down opex by another 15% to allow for positive cash flows at the end of the FY.
Well, here's Frontline's ATM:
"Sales of Frontline's ordinary shares, if any, will be made by means of ordinary brokers' transactions on the New York Stock Exchange, or otherwise at market prices prevailing at the time of sale, at prices related to the prevailing market prices, or at negotiated prices."
When looking at the volume and the share price movement it looks pretty clear that the vast majority (if not all) were indeed sold using the NYSE. Actually that's what an ATM is really about, Otherwise you would use a private placement.
Billings came in just in line with guidance and the cash burn was a whopping $30 mln. I wouldn't be afraid to short the shares here. The losses make it quite clear that there will be a secondary offering before year end.
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.
The FRO2012 shares were not pledged. Banks don't want to finance ships anymore but of course they would have given Frontline the short term money to pay off the convert as they had zero risk given the possible collateral of FRO2012 shares and huge future cash flows.
He doesn't suck cash out of his own pocket as HE of course DOES NOT buy any of the news shares the company is printing.
One day in the not too distant future FRO2012 will swallow poor FRO for close to nothing and JF will be happy about the cash FRO brings with it then. Your cash.
Actually it is a pretty weak piece of work by an author new to seekingalpha. I wouldn't expect any pressure on the shares today.
That's wrong again of course. The shares are sold into the open market by the placement agent. Actually that's the difference between an ATM and a private placement...
You might end up with close to nothing as early as 2016. There's little to no value in the shares and that's why management is flooding the market with freshly printed shares each day.