We only own some of the best acreage for now. Soon the debt holders will own it and you'll have nothing to show. That's what happens when your cash flow is too low.
Even if they buy back stock they will turn around and give it to the management team. Free shares to the insiders - is their paycheck and perks not enough?
You and everyone else knows that there is some production from 1st Q that will be in 2nd Q. That is already factored into the earnings estimate so that is not an add on - it already has been added to get the estimates.
Working with UPS on a domestic shipment and having to deal with 3 incompetent employees on the phone I wonder if this is a sign of the market top in this stock price. I can't imagine UPS continuing to be successful with the apparent poor systems and people. I wonder if they do their recruiting now at the Department of Motor Vehicles?
With the shorter term interest rates being relatively flat for the past few months I am surprised that the NAV of GIM continues to be moving lower. Obviously if these interest rates where moving higher the NAV would decline but they are not.
Anyone figured out why NAV continues to decline in this environment?
It looks like the insiders just got the word of the poor Quarterly release for tomorrow with the stock trading down sharply today. 10+ years and nothing for the shareholders but I know you will be comforted knowing the CEO made $5 million last year - for what added value?
We will know soon. Hopefully we will at least get a cash flow statement to see if there is any. I like to see GAAP accounting reports as well. Some like to pretend that interest is not a real expense and that depreciation isn't cash. Depreciation does represent a real cost of business operations especially in a capital intensive company since the equipment doesn't rebuild itself over time.
Of course, Mercer reports always emphasis EBITD as it tends to overstate earning potential (or in their case reduces the loss). NBSK prices have been very good the past few months but when you are discounting price by 20% or more from list it doesn't help much either...
Has anyone else noted that Jimmy's compensation was about $5 million dollars in the past year. Too bad the board does not at least partially align the CEO's pay with how the company is doing. If a company is growing, or making a return on invested capital over time one normally will see it being reflected in the share price.
Note that a long term investment in Mercer (when Stendal was still on drawing board) has produced nothing. 10+ years is a long time for shareholders to get nothing while the same CEO is taking in millions in a single year. I guess this is just another example of the company being a means for executive compensation while the shareholders are left holding the bag...
They have too much debt on the balance sheet and it is pretty clear there is going to be a liquidity problem - just not enough cash since there is NO cash flow.
They cannot cover the operating expenses and the debt service so that seems pointing to a debt liquidation event whereby the common shareholders are get next to nothing. The bond holders will own the productive assets down the road.
I am wondering if the head of Paladin is an alcoholic ?
Maybe drawing a 1 million dollar salary makes it sort of hard to lay off the booze.
This is a government controlled utility. Pays no dividends and not accountable to shareholders. Share price hasn't done anything for 10 years which is the evidence the company is not growing and not created for growth. Why put your money into something like this?
Most of that land will continue to produce nothing but moose pasture just like it has been for the last thousand years.
Combine that with a young and unproven management team and they get paid and you get - well you get the idea.
Any speculative talk about takeover shows your amateur status. The parent company is the controlling shareholder so if you were even able to buy all of the float now you still would be subject to the majority shareholder which is based in China. They control cards in this game.
I haven't looked at FFEX in years but saw were they were going to lease 240 replacement tractors.
I would recommend any shareholders to watch for the leases to family members at favorable rates. (wording may read like "current market")
What does A/R have to do with their bill payments? I don't have an issue with their A/R's.
Looks like you are on the wrong side of the balance sheet.
Look at accts. payable days outstanding for payables. That is why they are showing cash flow for the Q.
When they normalize their current payables cash drops over 100 million.
Thanks for that update Tex.
Hard to understand why the large pullback in share price over the past few months. I guess part due to Euro economy concerns and part is just same ole share price weakness that we've endured for years except for that last run up.
I think if Merc can show continued strong cash generation for a few more qrts. maybe things will change and liquidity issues can take a back seat.
It's been good to Jimmy and the executive team (on-going paycheck) but next to nothing for the long term shareholders.
Also, ignoring the large debt while implying the cash is equal to the valuation. The cash would not even pay all the debt.
CEO also said something about don't consider 2010 to happen again.
And, in typical Mercer fashion they will show a couple of pages of financial data\information but somehow never show or mention the (lack of) operating cash flow.
Here is an example of what so many were anticipating for OVTI four years ago. Worth the re-read.
When you fast forward to today there isn't that much which has changed except the realization that none of the glowing forecast ever came to past.
I sort of believe that it will be more of the same today since we are looking for better results in the next year but as time goes on it is always just 6 months away.... it never comes.
In order to help you understand that you cannot forecast earnings please post what you believe the blowout earnings is going to be.
I'll go first 9 cents / share.
Certainly no blowout...just a few pennies.