Its really a statement in the future. We are going up. Understand the math of 2 fifty cent pieces still = $1.00. this said, the stock is illiquid and having more shares out is a good thing. Anticipate they will issue update soon which will move us up.
Markets are closed on Monday, so it would need to be Tuesday or later if its not tomorrow.. Not expecting anything big, but think we have a shot at setting a new 52 high on the next RC plant sale.
Nice move in the stock. But no news. just looked at web site and no update on investor report. Regarding share price, I can get to $100 to $150 real easy on RC plant profits in 12 months but they would need another big rabbit out of their hat to get to $300. Arch deal for all is PWB coal at 50 cents/ton would do it, but its just wishful thinking for now.
Not expecting anything other than an update on RC plant sales and ACI/DCI equipment sales. Hope you're right on big news, but think they have a full plate with RC business and compliance products..
Thus far, nothing. I just looked on company's web site and they have not updated the analyst report since January (assume update should be coming, but nothing yet). A lot of things should be happening at company, but...................... no news
My share price targets remain $60 in April, $70 in July and $100 by year end. This said, seems like we could take out the April target with some solid/good news any day.
Still trying to figure out yesterday's 8% move. Seems logical is was one buyer who is not buying today (yet?). Almost an hour into trading today we've only traded 1000 shares. This said, I assume it was news related which may come out during or after BOD meeting) today or tomorrow
Thought the company might have posted its February analyst report to its web site today triggering a recovery in share price, but did not see it. Assume news is coming, just don't know what.
Just looked at short interest. It was up about 10% from year end to 1-15-14. Assume its "momentum" short selling by small time shorts. Makes for good fuel on days like today when we're moving up. A couple of RC plant sales could trigger a nasty short squeeze.
Agree they need to sell plants and expect the stock to react with each plant sale.
This said, book (GAAP) earnings would have been almost 35 cents higher in Q3 had they been able to count the tax credits and benefit the losses at 35% from company owned plants. The rule is ASC 740 -10 (formerly FASB 109) that will eventually require they book the earnings and set up a deferred liability for the losses + tax credits from the company owned RC plants (its a big deal that while surprise lot of investors when it happens)
In short, once the odds are than 50% that the tax credits or losses will be used at some point in the future, the rules require (not an option) that the tax credits and losses be benefitted for tax (reported in the period created) If the don't do it, they are understating the value of the company (it an accounting issue).
As a little background, the company was forced to create a valuation allowance for all its tax credits and loss carry forwards by the SEC after it took the tax benefit for the Norit settlement. At the time, the company's survival was in question so they failed the 50% odds test for using the losses in the future. Now, things are different. The odds are growing rapidly that it will use 100% of loss carry forwards and tax credits so they soon should "book the benefits" which will have a big impact on book (reported) earnings. The company has almost $5/share in deferred tax assets that may soon hit it books.
At some point, the company will have enough of an earnings record to book the tax credits from the company owned plants (for GAAP) vs. booking a valuation allowance. Not sure what it will take, but the GAAP earnings impact will be huge. I think a lot of people the company owned plants will always be a drag on GAAP earning (until they are sold). I believe they are wrong.
Issue is the company needs to show an earnings track record to show they can use the credits and losses long term. With the long term agreements they are getting from RC plant sales, would seem they may soon be able to show the tax credits and losses (for GAAP). The change would likely have a big impact on share price.
I assume we'll get an update next (either before BOD meeting or shortly thereafter). continue to think we're way oversold by about $10, but won't say short term where we'll trade. LT, we're headed up. ST no idea.
Assume the board could approved a stock split, but think a split is more likely this summer. I don't the company buying anything right now. I think they have all they can handle with 16 more RC plants to get running & sold + ACI/DCI equipment sales blasting off the chart. I think we'll be talking about buying things next year, but not now.
Hopefully we'll get some news on RC plant sales soon. Continue to think each RC plant sale is worth ~ $5 increase in share price. Given the sagging share price which I think is market related, my guess is the next sale will push us back to $55 and 2 plants sold would push us toward a new all time high and $60.
On Q4, I assume Q4 will look like Q3, but with higher gross sales (due to company owned plants). From the press releases, the company said they sold one RC plant and started up another early in the Q. For GAAP, I believe the plant sale will off set the plant they ran for their own account.
Later in the Q (in December) the company said it started up another plant (plant #12 if I'm counting right). Thus I assume the "drag" on GAAP earning will be small and only from the plan they put in service in December (likely offset by higher ACI/DCI sales). Thus on a net basis, I think Q3 will = Q4 (within a few cents/share). This said, each plant running is a good thing (eventually sold).
We'll get plants sales. Today, next week, next month? Don't know, but they'll happen + ACI/DCI sales should continue upward trend. . Not sure if new SOx additive will add to sales or not (does not matter at this point). Not planning to do anything until July or later.