Maybe my concern is somewhat irrational but it goes something like this. MDR used to be a much bigger company. Management has changed. Relationships with customers have changed. Where companies could wine and dine and play by the rules in the regions where graft and corruption were common MDR doesn't do that, at least not anymore if they ever did. MDR business and backlog continue to decline. Their break even is point is probably $2.5 billion in revenues but the decline in oil prices means less infrastructure spending and it is harder than ever to win new business. XOM used to be over 25% I think and now they are below 10%. Anyway, just wondering where the bottom is and what does the "right" size look like? When, if ever, will they book $3 + billion in sales again? Thoughts?
Pretty much all revenue comes from offshore work. I suppose you could say that much of the planning is done onshore and their yards are onshore but their customers hire MDR for offshore expertise.
Fair enough and thank you for your input. But in terms of top grossing on IOS Crush #3, Soda #4, Farm Heroes #9, Bubble Witch #20, Pet Rescue #27 and Diamond Digger #32. Top Grossing on Google Play.... Crush #3, Soda #4, Farm #6, Bubble Witch #11, Rescue #14, Digger #17, Pyramid Solitaire #60, and some other one at 86. So, all in all, there seems to be pretty good cross fertilization from Crush to other money makers. Agree future is in some doubt but given the base of monthly players, continued large paying base, and growing diversity of games and the low multiple to sales and profits, plus large cash on hand, I see KING as undervalued. Also, I think the CEO, Zacconi, know gaming the way Zuckerberg knows the social network.... and Zacconi seems committed to the task of making money and making KING dominant... just my $.02.... and do not rely on internet posting for investment advice.
Maybe some of what KING will say has been leaked early? But, we can all see that the games... Soda, Crush, Farm Heroes, Bubble Witch, Diamond Digger etc. are doing on an almost daily basis in terms of downloads.... and then extrapolate conversions to paying.... and sense that revenues are not falling as quickly as they were.... and may in fact be closer to flat.... portending a possible q over q increase by summer.... and if that occurs... well, the IPO price might have been correct or even generous to investors.
Not many answers. lots of evasion. Former CEO of Blackberry. Sounds like the CEO wants to monetize through putting mats in Starbucks... and then allow Starbucks to track customers?! Hmm? I take it that Powermat is competition for WATT?
CE has EV to EBITDA ratio of 7.43, below HUN. EV to EBITDA is a favorite ratio of investment bankers and buyout honchos.
EV to EBITDA ratio for some comparable chemicals. HUN 7.67, DD 11.85, EMN 8.15, DOW 8.88. So HUN is Rodney by that measure but is not ridiculously attractive based on the balance sheet and the restructuring memories from 10 years ago.
Another big tell, if the current President visited the business, bankruptcy has a higher probability. Oh, and I voted for him.
These guys have about 100 franchises, ave. franchise in US might be worth $5 million, but these are probably bigger and better than average... so maybe double the average.... just a guesstimate.... anybody else want to opine?
PLXT has said they do not see IDTI in the market at anything close to the level of a few years ago. I suppose IDTI still picks up the phone when you call to request PCI express.
They banned the merger with IDTI at ~$7 a share (versus current $6.50) in December of 2012, on antitrust grounds when only 25% of the business is in the U.S. Since then IDTI has essentially removed itself from the market. This fall PLXT will be gobbled up by a Singapore based company... along with all the technology. The jobs will stay for awhile but 3 years from now, don't you think most of them will be gone? I love my government. A great result for America???? My bet is that the FTC doesn't care a whit. Other opinions???
My take is they cast a wide net looking to sell the company and that $6.50 was the best offer. Why would Potomac take less? I, too, was anticipating more but apparently PLXT's moat isn't as wide or deep as I hoped.
Any chance IDTI takes another run at them? Maybe there are no longer antitrust concerns since IDTI essentially dropped out of the space? Potential growth engine? And maybe available for about same price as earlier deal?
1. They have assembled a very impressive team of top managers. 2. They seem to have a reasonable business plan. 3. I'm not sure if the price point works.... $300 for transmitter and $100 for each device's receiver... if I understand correctly. What do others think of the price point... good? or DOA? Thanks.
RE: "upward energy prices will compel growth in their most profitable segment." With CAFE standards and new vehicles achieving ~3% annual mpg gains along with L.E.D. light bulbs(~13% of residential electricity goes to lighting) which consume ~1/6 the electricity as incandescent maybe the upward trend in energy prices is about to take a hiatus? A call outside conventional wisdom but then.... who saw the fracking revolution 10 years ago?