Plus they said the cash will last until the second quarter of 2015, which means they will have to look to raise money about one year from now again. Can you say DILUTION? Well, it will give them a little time to find a whole new group of bag holders while they live off the funding from the last offering; live very nicely indeed. Great work if you can get it.
Plus, they already warned you that orders are slipping to the last half of this fiscal year on the most recent CC. Just like the CC preceding that when they warned of a "soft" upcoming quarter. Ignore it at your own peril. Geez, you already got burned once.
The timing of the CEO and CFO departures and of their stock sales is telling. You need look no further than that.
Why would anyone be surprised at shorting at $10 taking place? The current quarter number is likely to be almost as bad as last quarter's. Lucky if it's break-even.
I wonder if it's the guy who bought at $4.79 liquidating at $3.54 now for a cool 26% decline in 48 hours? Hope it is not some poor retail investor who got fleeced. You would think the Board would just pursue sale of the company rather than let this sort of thing impact shareholders.
Day Traders playing with it before year-end. Low institutional ownership. Just a handful of guys probably playing around w/an illiquid and unsettled situation and pushing speculation back and forth.
Also I personally dislike it when insiders don't stand foursquare behind their company when it is supposedly right on the cusp of a revolutionary quantum leap in the way they do business (paraphrasing their words I believe), and I think they should be called on that.
It's a near term concern jda. Insiders sell for many reasons it is true. But when a director dumps nearly his entire position in a single day, following on the heels of the former CEO dumping half his stake immediately following the fiscal year-end results, and the CFO dumps stock as well, and both of the latter retire just ahead of a supposed significant ramp up of a new market-leading propriety technology---it just makes me curious why that is happening.
Longer term the company has some characteristics that lead me to believe they could be "in-play": Cash approaching $4 per share, no debt, significant free cash flow, record backlog and a solid book of business going forward, proprietary technology enabling them to win the majority of work on which they bid, a worldwide auto cycle in upswing mode, low inside ownership, and most importantly , under- management of the financials and an inability to produce consistent reliable earnings growth and match revenues and costs in a timely manner. They are set-up for someone else to move in and run the business--but it is a longer term positive. So you time your purchase of the stock as fiscal second quarter (December) results could be lackluster, but longer term some sharp guys will likely help you realize value here. Just a guess and JMO.
Looks like he only is retaining 3,000 shares so that is almost a complete exit of his equity in the company. Wonder when he dumps those?
A Director exercised options on 14,000 shares and then dumped the entire lot in whatever increments he could quickly to get out in a single day. Not even trying to spread out the sales, just get me out. December quarter results could be a doozy. Last quarter they said the upcoming quarter could be soft and look what has happened. This quarter they have said order(s) are moving to the back half of Fiscal 2014. You can only imagine what that says about upcoming fiscal 2Q results ending December 31.
A little over 2.5 million shares have traded since that disappointing EPS report, and it's probably largely institutional. That would account for about one-half of all the institutional holdings. It's pretty rare that you see an entire liquidation by all big holders, so I don't think you will see another 2.5 million shares sold, but I would not be surprised by another one to one and a half million shares being dumped. It's not an easy stock to get out of and takes some time. If it were a disappointing report from IBM or Apple it would be over in a couple days or at most a week. Here it could take a couple months w/the process finishing by about year-end is my guess. Fresh start for a new year for many who will decide to sell, in a less volatile investment alternative.
That's a pretty good point and I won't disagree w/that. But my point is that there are hundreds of companies for institutional investors to choose from where they do not have to deal w/this magnitude of quarterly earnings variability, or with the issue of revenues and costs being matched appropriately in a timely manner, where every single earnings release does not seem to be a total guess as to what you will see. You can have great technology, record backlog, surging bookings but you will never ever get the multiple on earnings until your earnings stream becomes reliable and your quarterly earnings progression shows some consistency. Maybe they get to the point where they can earn $2.00 per share in a year, but you would like to be able to put more than a 10 multiple on the earnings a few years down the road. You can't do that w/o reliable numbers you can believe in. The big boys don't like roller coaster rides.
By all accounts they have a terrific product (Helix) rolling out, and a de facto endorsement from GM w/the new Corvette line. But just look at the quarterly numbers going back over the last several years. They are all over the place. I realize the business may be cyclical and order or delivery or installation timelines can be lumpy, but they really need to do something about that quarterly volatility. And they absolutely have to match revenues and expenses in a timely manner, at least in the same quarter. Every quarter seems to be a surprise from these guys, both positive and negative. Even earnings release date has to be accompanied by a bottle of Pepto Bismol. Better operated as a private entity IMO where they would not have to issue quarterly reports, or as a part of a much larger corporation where the quarterly volatility would be easily absorbed and little noticed.
Do you really trust the quarterly earnings reports from this company? Do they really pass the "smell test" or do you get the feeling they are just "spitballin" it from quarter to quarter and taking their best guess on the numbers?
Because of the quarterly earnings variability/volatility it is very hard to see how you get more than a market multiple on earnings. The best case is that they sell the company to realize the true business value inherent in the leading edge technology rather than hoping for stock market value which could prove elusive.
How you going to do that when you cannot trust the numbers? One man's timing difference is another man's lack of transparency and yet another's accounting "issue". Institutions are not going to want to be bothered with such nonsense.