the easy money has been made on the long side during the last few months as well as on the short side yesterday. As said before I expect the shares to be range bound going into the Q4 release as the focus will be on 2015 and new product sales. So no need to be long or short here going forward. Will revisit the shares next quarter.
They just bought the shares from KI Corporation BELOW market price. They didn't buy any new shares. No cash infusion for MAGS. No vote of confidence, just easy money. And what about the seller ? Lost confidence ?
KI wanted to sell and offered a discount, FIMI took the chance. That's all. A very minor investment for FIMI by the way.
Everybody knows that Q4 will be good so the focus will be on FY15 outlook
Only substantial new project awards might propel the stock higher from already elevated levels
There was no cash-flow statement in the release but given the fact that cash is down again without any acquisition activities this time it looks pretty clear that operating cash flow was negative.
I already stated that the company is doing somewhat better than in previous years but this is already very much reflected in the share price. Without new substantial contract wins the share will remain range bound going forward.
The company is basically converting some major longer term projects to revenue in Q3 and Q4 2014 which most likely won't be repeated going forward so the current revenue level does indeed not look sustainable over a longer term time frame.
Even worse the much touted Cyberseal product does not get the quick acceptance in the market place the company has hoped for.
The company is doing better than in previous years but still the nature of the business remains lumpy and profitability might again be challenged going forward. Cash has been going down constantly so this is a metric that should be watched closely when the company reports Q4.
Covered the rest of my short position for a $25k gain and would view the shares as somewhat dead money going into the Q4 report.
what do you think how a secondary offering works ? At first management is negotiating with several investment banking firms to get the most money for the lowest fees. So not only OTIV management and the guys from Northland knew about this early. At second management picks the best deal (in this case Northland Securities) and Northland starts calling their clients to sell the new shares. At this point at the latest EVERYONE in the professional financial community knows about the offering and can act accordingly so I wouldn't call this manipulation...That's just the way things work and this happens everytime once a secondary is to be announced.
after taking down guidance last week the company has a new sweetie for investors seemingly
the short squeeze on this bad company won't start until they finally start to deliver earnings at least in line with expectations. INVN is one of the worst companies in the market and should be avoided at any cost.
who cares - the shares are up today but will give back their entire gains as always as momentum money gets trapped and no real investors are buying. This remains a lumpy business that even at record revenue levels continues to burn cash. Not to mention that most of the revnue upside was recently acquired.
momentum traders once again got trapped here in MAGS shares (as almost always) - this will put considerable pressure on the share price for days and weeks to come. Staying short here and looking for $5 to cover.
new lows as expected - business remains lumpy and last quarter's revenue performance won't repeat going forward not to mention the currency exchange gain... this will give back ALL the gains perhaps as early as today
shares will give back the entire gains during the next days - shorted 40k shares around $5.95 - but will cover once the shares move to new day highs on momentum
Actually 1/3 of the reported income was solely due to currency translation and given management's comments I wouldn't think that the reported revenue level is sustainable. Shorted here.
should they label themselves as "most badly managed and soon to be bankrupt installers of solar equipment" ?
and given the quarterly revenue run rate you might imagine that they are NOT among the nations largest installers
Actually it reads: "Our salesforce consistently acquires contracts which we can't deliver on time or at all due to capital constraints and bad management. This leads to a high rate of cancellations and a poor reputation"
The only good thing in the report was the increased backlog but even this is at least partly a result of the company's inability to timely convert backlog into revenues.
Because they were in breach of the financial covenants of their credit line they obtained a waiver from Silicon Valley Bank but in exchange the borrowing capacity was reduced so that available liquidity was down to just $3.5 mln at quarter end. And they will have to renegotiate the credit line at the start of 2015 which might lead to even lower borrowing capacity and higher interest costs.
Nevertheless the company expects to stay afloat during 2015 by reducing working capital needs and converting backlog significantly faster.
Even backlog isn't really a number to rely on as the company had $5 mln in cancellations in Q3 alone. There's still no path to profitability going forward and I still would expect the company to file for chapter 11 in 2015.
management denied to answer that simple question with "yes" on the call. Given the results and management's performance on the call so far I see plenty of downside for the shares.
will listen to the conference call but clearly the company is facing delays in its own projects which is bad. Analysts won't be too happy given the poor margin guidance which will cause the company to fall short of current eps estimates.