Agreed on all. I don't see what they need that much cash for if they are turning profits each quarter. Plow that money back into share repurchases and really put yourselves on the investment community's map. They're on record that they can process up to $50 million with their infrastructure, both physical and personnel, so what else good can they do with that money? Will they buy a complimentary product or process? I don't know what that would be if they have the superior product in two different arenas. I still contend that they are lacking a true hand held device and I've been told its not possible from a technical standpoint because their "horns" are too heavy. In other words the 100X is the smallest possible unit using their technology, and although its portable its not truly handheld. They have a body harness where a guy can "mount" the 100X unit on his chest. IF they can produce a superior hand held product, I think they easily add millions to the top and bottom lines and it would be worth investing their cash in developing that kind of product. Otherwise, they need to return that money in a tangible way to the owners of the company.
I don't think anyone knows what to do with this stock. Part of it is a new product in a new market (directional sound) that they dominate and part of it is that they've developed a better mousetrap for an existing market that may not appreciate all the qualities of the better mousetrap because they've been buying other inferior products for so long. They need to do a better job of educating the investing community on the potential for each product in the different markets.
I'm hanging out in hope that this thing reaches critical mass and jumps a dollar or two within a matter for weeks if not days. Its a thinly traded stock and is becoming more closely held as the quarters pass. Seems to be setting up for a nice run. My guess is we'll see some real upward action between now and the end of August.
Chicken and egg...will more people posting lead yahoo to clean up these boards or will cleaning up these boards lead to more people posting. Who knows.
Since its just you and me holding down the fort, I think their next three quarters will be fairly strong. They lost money during q2 and q2 in fiscal '13 so even breaking even would knock off those negative numbers and make their p/e look more attractive. Since their backlog was seven million plus, due to ship by the end of June, they should show net profit when you lump the two quarters together. Putting that together with their nine cents per share from q4 of fiscal '13 will give them a p/e of approximately 20 at these prices. Hopefully we maintain a p/e of thirty plus which would theoretically propel us to three dollars a share in August (when the numbers are reported), which would be nice.
I think whats happened is yahoo doesn't care anymore. They might have made money by providing this service but the free flow of spammers probably means they don't have the personnel or the inclination to tame it. I don't know how much they can bring in from advertising to posters but its probably not enough to cover the it costs. At least that's my guess.
Weak market, opportunists scooping up shares. As you've pointed out, this is still a story stock and not much has been said lately. We NEED news.
First and foremost, agree with your last sentiment. Such a horrible thing. And frankly, this is one of the reasons I've been a long term investor in this company. From an altruistic standpoint and investment standpoint, effective communication in all forms can help limit the impact of these events. I don't know about the mass notification system that is used at Ft. Hood but people in large gathering areas will benefit where a timely warning with instructions will help limit lives lost.
I did not attend the shareholders meeting but I do know some one who did and the general sense he got was that things are positive. Even Tom seemed upbeat which has not been his outward personality. Maybe he's listened to the criticism and is trying to be more of a cheerleader but the future should be bright.
I haven't tried reporting the fake posters but maybe that would help.
That's about the perfect week to a rather boring week. I'm hoping against hope that someone or someones are accumulating shares in anticipation of orchestrating a big push upward. Would like to think that the backlog the company has is only the tip of the iceberg for future revenue, but based on our stagnant share price, I think we've found equilibrium for awhile.
The next two quarters should be at break even or show a profit. This should make the stock sheet look a little nicer as they will replace the five cents in cumulative losses from the second and third quarters for fiscal '13. So we could be looking at trailing earnings of twelve to fifteen cents when third quarter numbers are reported in August. That, along with some respectable order announcements, the promise of a solid fourth quarter and anticipated (hopefully) increased government spending in fiscal '15 could propel share prices into the threes.
In the meantime, I wish that Brown was about a 1000 times more charismatic. It would help to have a cheerleader that could effectively draw new investors between news and financial events.
If you already have shares, why was your initial question about investing in the company?
Buying back shares increase shareholder value by reducing the supply of shares. Supply/demand 101. Supply goes down, demand is up (at least temporarily), price goes up.
Frankly, I'm in a hold pattern with them but that's because I've had shares for a long time and am frustrated with the lack of progress. There are always the unknowns in any investment so maybe my view is tainted by time and mediocre results to date. I blame a lot of that on a weak board, bad financial management (ie, letting their cash collect dust) and an inadequate investor relations person who didn't care to or know how to work with wall street.
The recent positive changes - new board members who have connections, a new investor relations head, Brian Harvey, who has the experience and drive to do a much better job, and a new emphasis on making their cash work, ie new products/markets, new employees and reinvesting in their stock via a share buyback. ON PAPER, everything looks much better than it did a year ago so I would think the new investor would like what they see and buy a few shares. But the questions remain as to how much bigger the market is and if the company is positioned well enough to get that market.
FWIW, the investment community has increased their stake in q1 by more than ten percent. Check out institutional holdings on their nasdaq page. Countering that is the reality that the management and board have not purchased many shares over the years. That could be a bad sign but I'm beginning to think it has more to do with their investment style, ie they personally are probably oriented towards dividend investments vs. growth securities. The president is the ceo as well and has controlled the board via appts that are more geared towards accounting types vs. sales marketing types. I would guess hey are more conservative in their thinking.
If I were in your shoes I think I would deem it worthy of an investment but I don't know how much more the market cap can grow from here and how quickly. Having patience would help but the stock has a small float and is prone to wide swings so short investors can profit too under the right circumstances
In a nutshell, the company has a unique technology (directed sound) where they are considered the leader and favored by the largest purchaser to date, the federal government's military branches. The size of the market is indeterminate but there seems to be a number of different uses beyond the military including police and emergency responders, maritime shipping, wildlife control and border security to name the four largest outside of the military, both domestic and foreign. The advantage is distance and directionality.
They now are moving into an established market with their 360 degree products which can be used primary in emergency broadcasting, early warning, general information etc. There is some crossover in that the same customer (like an airport or police force) would purchase both the 360 and directed sound products but since sound naturally travels omni-directionally, there are other older technology products (more siren like) that have been used to transmit sound to great distances. The advantage they have is distance and clarity to make voice communications more practical.
Many languages require great clarity in order to convey the proper meaning of the intended message due to their emphasis on inflection, tone, etc that English and others might not require. A computerized voice might work for English but may not work for Chinese for example. The LRAD products work better for vocal communication than sound emitters that were designed for siren like sound projections.
The company has had stagnant revenues primarily due to their reliance on US government purchases which have been lacking. They had a really good 4q '13 which has given investors more confidence that the markets will purchase their products. They've gotten a nice border patrol order for $4 million which hopefully portends well for their 2000 product line. The early warning market is projected to grow 3 fold in 5 years.
No debt and about working capital of $24 million.
Hope this helps.
In case you don't watch the show, its a cop comedy starring Andy Samberg from SNL days. Last night's show featured an LRAD500X even thought they referred to it by another acronym. They didn't demonstrate the product technically to form as the operators said they couldn't hear the sound even though in the real world they do. Brian Harvey confirmed that the show did ask to use a unit but the company didn't know when it would be aired.
Hopefully it leads to more awareness of the tech.
....investors that are sitting on the sideline or shareholders that are on the edge probably want to see seven figure orders to get them excited. Still, I like to point out that follow on orders can have a higher level of merit because it more than likely is demonstrating the efficacy of the technology when you get repeat business. SO a six figure repeat order in many ways should have equal standing to a larger first time order. All IMHO.