It doesn't matter. Every shareholder has the opportunity to acquire more shares at the discounted price. If the discounted price is a tremendous bargain, certainly everyone will be signing up for shares. However, I will assure you, the discount is likely going to be no more than 5% or 10% below the market price. Why would it be any more? The objective is not for Swenson to acquire more of the company cheaply - if he wanted to do that, they could just do the entire offering as a private transaction giving Swenson as many shares as he wants at whatever discounted price he wants. Have you never seen that done at other companies? It is very common - especially biotech/biopharma companies...they do it all the time.
The objective of the rights offering is to raise some money and solidify the company's cash position during this lean/transition period. They are offering the discount as incentive for existing shareholders to increase their position. A secondary effect will be to put more shares in the public float, and increase the liquidity of shares trading.
You shouldn't view every action by the company/board as an attempt to give you (personally) the shaft.
I got tired of seeing $2.25 a few days ago, so just took some shares there - will take more if/as it goes lower.
Way undervalued today while posting profits and growth on the horizon.
Now that the business is stable and financials are strengthening, buyout potential is real.
I would tend to agree with your thinking as this has been a brutal/extended winter as far as cold/storms.
I did notice about a week ago that our local supermarket was a bit light on the Cold-Eeze. There were originally 3 rows of product and pretty much a full 2 rows were gone. I was looking at expiration dates on the bottom of a few that were there, and was a bit alarmed that some had expiration dates of July 2013 and others labeled as July 2015. So, I took the 2013s and threw them all in the way back of the sheld where nobody could get to them. I'm not sure if the product actually goes bad, but still annoying seeing the expiration date 6 or more months back.
In any case, I have begun repurchasing my shares back at $1.90 - only a little though, will buy more if the shares slide further. Though earnings will likely be good/very good, my concern is the seasonality factor and people may simply sell off regardless since we have the two soft quarters coming.
Much smaller expense footprint all around throughout the entire business.
This is how turnarounds work - if you cannot stick it out, then you may want to end your agony, sell your shares, and move along. Though it seems you enjoy when you perceive someone is doing something bad to you and you can rant about it, whether rightly or wrongly.
Most all turnarounds follow the same path - reduce sales, reduce expenses, stabilize sales, grow sales with higher margins, enjoy growth and growing profitability going forward. We are in the stabilize sales phase.
Get with the program.
Please explain your logic/theory?
Who is "they"?
More than likely what's happened (my theory) is all of the gullible/naive Average Joes who bought because of the Seeking Alpha pump articles at higher/inflated prices are down 25% or more in a very short time period. They are not investors, but simply follow the crowd/momentum. They don't know or care one bit about this company. They either make fast money or they lose it. They sell and move on.
Nobody is going to make a killing off the public shareholders.
In all likelihood, business is going to progress exactly as has been publicized for the past 6 months, and during the second half of this year there's going to be new contracts announced. Then there will be a new flood of Average Joes chasing the momentum, a new Seeking Alpha article from one of the two pumpers, etc.
I'm guessing that fred_jdc, like myself, has repurchased some of his shares back with this fall in the share price.
"You know, i invested basket of small community banks last year or so but my results about (+-0) huge drag for overall performance. I have divested all, because they quite much lost momentum, i don't know was it looming TARP div increase or what, but i sold them and planing to buy back, when dust has settled down. I will look GRBS closer. "
Interesting - I did the same as a result of scanning my insider purchasing records and for every last one of the ones I invested in, I could kill myself today for having taken short-term profits and selling too soon. All were up, not one was down - even today. Luckily I held and ramped up my holdings of UBMI during the December tax selling.
I've learned that these banks do have/follow a seasonal/cyclical pattern. They get a bump up around this time of year, summer is slow and they sell off, then they pick up again in September/October.
On GRBS - don't buy unless you are prepared to hold a long time - just look at all the zero volume days on the price history table/pages. I bought because I was interested AND a large volume ask was showing. If you accumulate 100 shares at a time, it will be a pain and rack up commissions and take lots of time. I probably would not have purchased (at least now) if the large ask wasn't there.
This is a done deal - just a waiting game from here.
Many, many synergies - very obvious to those who understand.
ULBI will become a division of HON.
Honeywell International Chairman and CEO David Cote reaffirmed the company's first quarter and full-year 2014 outlook—in a CNBC interview Wednesday, ahead of the company's investor conference.
"We're still up about 10 percent in earnings; about 3 percent or 4 percent in sales. So [we're] getting a very good leverage," Cote said on "Squawk Box."
He also said the diversified aerospace and technology is targeting double-digit earnings growth over the next five years, while hoping to deploy more than $10 billion in that time frame.
The money would be used for acquisitions, Honeywell said in a statement.
(Read more: Honeywell targets over $50B sales by 2018, M&A ramp-up)
"Do you own / follow any similar companies? "
Sorry, I missed that this morning.
Currently, I like ULBI the most out of the 20 or so positions in my portfolio. It is definitely the strongest from a financial/balance sheet view. I am usually very jittery with most technology names I hold, however, not so with ULBI, I am very comfortable with it. Somewhat similar from the technology slant and strong balance sheet - both GSB and ITI are strong ones I have. Both can double in the next 12 months.
The other tech I have is SMTP - you need a strong stomach as their float is low and shares are volatile. But, they pay an abnormally high dividend so it lessens the headaches somewhat. The company is profitable, no debt, high margins, run very lean with mostly Russian employees/developers. They just did a secondary offering to raise money just to have a cushion. You can buy shares today below that offering price...which was at a 30% discount to where the shares were trading when it was announced.
I noticed and was going to post similar. Seems his sell price is $2.25. Only selling about 18k shares at a time, but while we are back to normal trading volumes it obviously keeps a lid on things.
1. Lloyd has been doing pretty badly overall in his investments lately. He is taking a bath in COSI. Instead of following the rule of "cut your losers short, and let your winners ride" he's doing the exact opposite - selling ITI and buying more COSI.
2. We saw the big blocks trade and shares hitting new highs at the time of the last conference presentation.
I'm very confident that with the Roth Conference, loosening of federal budget strings, and the weather finally getting nicer the remainder of this month, we are going to see an acceleration in business and new contracts soon. Shares are going to get a nice upward trajectory this month through September/October.
The post is correct. I'm sorry that your only purpose here is to twist the facts - you must have really lost a boatload of money here in the past.
How many shares were traded at .1502 today? Only 2000 - a whole $300.40
You are throwing a hissy fit over mere hundreds of dollars.
"By the way, I have been following PDEX and would blame Hurwitz, not Swenson. Hurwitz was ineffective in enhancing shareholder value which opened the door for value players like Swenson to rock the boat."
Where is this nonsense coming from? Hurwitz has been CEO for all of 6 or 7 months - after the prior CEO, who was the real problem was thrown out because of Swenson's actions.
"Swenson owns 750,000 shares of PDEX worth about $1.7m. PDEX is a tiny company with less then 100 employees . It is controlled by Hurwitz, who probably doesn't see eye to eye with Swenson."
Hurwitz doesn't control PDEX. As far as not seeing eye to eye with Swenson, you are very wrong - Hurwitz would be out on the street otherwise. Hurwitz was CFO, when the old CEO was thrown out, Hurwitz was additionally given the CEO position by Swenson. Hurwitz owns a measely 5000 shares. So again, how can you say that Hurwitz controls the company? Swenson controls the company and Hurwitz takes care of it for him on a day to day basis.
Thanks - appreciate it. You are definitely correct - most of the things I invest in are thinly traded/followed and it can cause ulcers at times. However, what I've learned is that I'm usually right, just early to the party. It happened a few times over the past year - my biggest winner (over 100%), I was the only person posting on the board (UBMI) and they ultimately got a buyout early this year.
However, what I will say is that the first thing that leads me to a company/stock is the insider purchasing. From there I slap on the fundamental analysis. But the insider purchasing is always the first filter. If there's no insider purchasing, I really don't care what it is or how good it appears.
If you really have an iron stomach, check this one out - I just bought this morning - will probably end out holding for 5 years - GRBS. Teeny tiny bank (I am partial to banks these days that are mispriced) - good insider purchasing record, CEO just bought shares last month, and financials look really good. But, because of the low float, sometimes there might not be a trade for a week or two at a time!
What else are you invested in? I've found that folks I run into on the boards I participate on generally have similar likes/dislikes when it comes to where they put their money.
"FINL is trading with a 19 PE and P/S of 0.8. If we value SPCH with a 19 PE with 4% net margin, that's about $4/share"
I meant to type a little more, but space ran out.
But my final point again comes back to P/S - with SPCH currently at 0.04...obviously if that is a more normal number, the shares would be valued many times higher. Even in distressed retail names, I rarely see P/S below 0.15 to 0.20. At 0.04, it is extremely compelling.
1. Similar to ULBI, management holds a large stake and is buying shares. Above $2.50 in the past there's been some sellers, but below $1.75 the past few years they've been buyers.
2. Earnings for this past quarter. Here is a retailer that turned in a good/solid profitable quarter. That says something important. While most other retailers have had a downright awful holiday quarter, SPCH turned in profits - and that was during an ongoing turnaround.
3. They have a good website/system. I ordered something online a couple weeks ago (after already owning shares). The price for what I purchased was a good 30% to 40% below what the price was on Amazon and the shipping was free. The website was very good, the selection was very good the ordering process was very good, obviously the price was great, it shipped out quickly, and what I ordered was exactly what I wanted, it fit well, and everything was excellent from start to finish. Couldn't be happier.
4. I think the shares are very undervalued for what the financials show. Price/sales is 0.04 - the company is being valued as if it's going out of business. I remember a few years ago when I invested in Finish Line (FINL) it was valued in a similar way. Longer term Finish Line shares have soared - I think the same is possible here. However, while I was too fast to sell my FINL shares, that won't be the case here.
Like ULBI this is another turnaround play. The big difference is that SPCH has the sales and they really just need to tighten things up to reduce costs and increase margins. With price/sales so ridiculously low, even very small full year earnings will move the shares much higher. How difficult would it be for SPCH to have net margins of just 1%? That would translate to EPS of about 5 cents/share. I think SPCH should be able to have net margins comparable to FINL, which is just over 4%. FINL is trading with a 19 PE and P/S of 0.8. If we value SPCH with a 19 PE with 4% net margin, that's about $4/share.