I wonder if the 5 million trade day was created by day traders. It seems suspect since the news that could have caused this kind of volume was released a day before. I saw a .10 drop in the price from a volume of less than 1000 shares. How are the short interest figures computed? It just doesn't add up.
That is my take on this company also except I don't believe its over. The world economies are being stimulated here and amco should benefit. The question remains whether these short term receivables are with credit quality companies. It appear to me that amco can make a lot more sales with credit. Do you really believe that they would purposely make credit to companies who wouldn't pay back? There is also the Chinese bank they borrow from that may look at this too. This is the risk, though.
Good for you! Maybe your on to something. I suspect that that strategy will end soon and it will go way below book like it always has done. Looking forward, I see poor earnings. What good is book if you can't make any money on it? Part of book is account receivables and that is dependent on others. The inventory issue could become Hugh, that is also dependent on others. Good Luck with your trades!
tgn2166 there are little short sales so why would someone who just bought sell their stock for a loss especially since the fundamental are improving. It just doesn't add up. The only explanation is that the specialist has a hand in this. What is your take?
I think the stock is manipulated. If investors decide not to give up or trade it will head higher. The fundamental are there. Insiders could have bought yesterday.
Investors who study book value always start a discussion of the cash that is on the balance sheet which for sgma is small . There is a lot of money in inventory which can be come obsolete not that I am saying it is. Accounts Receivables is another area that is suspect. Did sgma issue credit to companies with poor prospects to payback so it could make more sales? How was the purchase of Able handled? Is the purchase stated as the purchase price which was too much?
In the past, I used to buy companies with high book value and I learned the hard way it does not work. One of those stocks was sgma. Beware is all I can say here.
I am not an accountant so I am not going to discuss how sgma values book value, but it can have goodwill as part of book value. There can also be obsolete items counted in book value. There is also the issue of what real estate is worth. I would think that sgma book value is not what is reported since there isn't a raider trying to add value to this company. Give sgma time and you will see another acquisition made at a very poor price. That's the sigmatron story!!!!!!!!!!!!!!
"Tough for selling", you got to kidding me! What's the PE here? What is the return on equity? This is one poorly run company that does not deserve a PE of 25 or more.
If I recall correctly, the inventories of scrap on the last earnings report were at a low level and it possible that the scrap isn't steel. There are contracts already in place that may absorb the scrap altogether. If scrap prices are down, then they are down to amco too.
If you ran a business that was losing money and you needed money to expand the business, would you explore all opportunities? The information I came across stated a loan of $78,000. It was a convertible note.
I know the financial statements are not Fraudulent. Why would a company post losses for many quarters to be fraudulent. Think about that and analyze the statements and you will see a different story. Yesterday, I ran across another recycler in China. The same thing years ago were being stated about them and there still in business. The company is China Recyclable Materials. They have sales of over 6 Billion. What scares me about amco is that their strategy is aggressive. If you read the press releases, it is easy to figure out what their sales for the next quarter will be. Amco is trying to be straight forward with you at the moment, maybe they are learning, I don't know. I don't believe amco will post a profit for the first quarter, but I do expect them to do better.
http://www.steelguru.com/international_news/Chinese_steel_exports_in_January_cross_10_million_tonne_again/357125.html It is written that the Chinese have excess capacity due to the fact that the domestic economy is not absorbing the steel. So, this could be for months! Thanks for the post!
Thanks for the article. The most logical buyer of AMCO in my mind would be a Chinese steel company although these companies would also be a fit.
Considering the fact that sales in the first quarter last year were only 10 million, anything they get this year will be better than that. AMCO has already said that the recycling business is better and also the trading business. If it gets much less expensive, it could become a buyout candidate. There are profitable scrap companies in China.