I am down about 80% on this one too, but if you look at the latest 10Q you will see the company has about $1.61 in cash per share. If I had some extra cash I would double down on this to bring my average cost down. I don't want to encourage anyone to throw good money after bad, but it might be a good strategy once you see revenues increase sequentially.
I would surmise the buying is on anticipation of the 10-K due out for the year ended June, 2014. If the results disappoint you could see a big reversal. The revenue numbers do not appear to be growing sequentially on this - plus they have just a single product on the market. On the other hand, some of these medical device makers enjoy premium multiples which this company currently doesn't trade in synch with.
If you look at the 10-Q for the June, 2014 quarter you will see that the company is worth about $1.47 on a liquidation basis. Take Cash + A/R and back off Current and LTL. The company has 21 million shares outstanding so you arrive at $1.47 per share. I am down over 80% on this one and might add also if I had some spare cash.
Do insurance companies cover stock market gyrations ? That's news to me. Seems like failure to disclose a liability that results in a tradeing halt is negligence. They could argue that VIE GAAP conventions give them credibility, but I'm not sure a judge would find the defense reasonable. Face it - it's a colossal gaff.
Your gibberish might indicate the Fab needs to hire a new PR guy.
They are probably going to be using the excess cash to defend against all the lawsuits ariseing out of the tradeing halt. If they lose the lawsuits they will also be paying settlement expenses. I am long on this stock also but don't plan to throw good money after bad.
They have $69 million in cash if you net it against the current liabilities. I assume the attorney expenses might eat some of that up if they have to defend against lawsuits arising from their delisting. The outlook here is nothing to laugh about.
They did not pay a dividend for the quarter ended April because they did not ship much ore. The ice on the Lakes made them unnavigable for shipping. If they do not ship ore they do not receive payment ( I presume). They still had decent production for the latest quarter so they have a ton of inventory waiting to go. Trust holders might see a lofty dividend for the quarter ended July if they increase shipments to make up for the shortfall caused by the harsh winter ice conditions ( I presume). Not sure how much ore the mills will take though. Maybe they can market it overseas.
I just looked at the 10Q for the period ending April and production is up 26% over the same time last year. They hardly shipped anything though due to the weather so they have a ton of inventory waiting to go. Maybe the dividend for the quarter ended July will spike due to the abnormal rise in shipments if they are going to make up for the shortfall in the April quarter
I researched stocks currently experiencing a trading halt on US exchanges and most of them were China based corporations. One has been halted for over a year. If I had to do it over again I would avoid US listed stocks with China based operations. Apparently the halt is because they failed to disclose some debt on the balance sheet.
Hey Kelly, when is ethanol going to go up and corn going to go down? Looks like the charts are setting up just the way we like them.
This guy with the derogatory democratic party label knows that the dems have better policies for the US auto industry then the repubs (other than the BS CAFE stuff).
Sorry to hear that carprob03. Some forms of cancer have decent survival rates. If I was at least 75 years old and was diagnosed I would feel satiated that at least I got in an average life span.
Bond yields are off eight basis points and gold is up 1%. New intra-day high yesterday on the Dow at 16,730. No confirmation from exchanges though as volume is light.
According to NASDAQ there are five stocks currently halted on the various exchanges. Four of them have primary operations in China. The chances of randomly picking a stock and have it halted are about one in 969. The day you bought Fab was your lucky day ! Hopefully the new accountant, Mr. Wu can expedite the audit. Probably helps to be fluent in Chinese.
One out of 5000 shares get delisted and these guys manage to be the odd man out. Don't the executives own shares? Put 20% of your money where your mouth is. I did and got burned. (hyperbole)