Executed better than expected for the quarter. Decent outlook. Next quarter has losses lower than current estimate. CEO is very strong and has the right plan for moving forward.
This is a turnaround play - it's expected that there would be a few soft quarters. The company is doing what's necessary to return to long-term growth/profitability.
Book to bill 1.26
The way to play these is by buying slowly on the way down - don't shoot your wad all at once or you will be extremely disappointed if you don't catch the absolute bottom.
"If we double 6 month revenues we'll have about $61 million for the year, 2% to 3% would be operating loss of about $1.5 million and currently we are at a loss of $2.4 million..."
As indicated on the call, back half is expected to be about $40 million revenues and about $70 million total for the year. So, 2% to 3% is a loss of about $1.75 million - again, there will be profitability the remainder of the year. As also indicated, this is the conservative view. They are successfully diversifying into commercial areas to compensate for decline in government business. When government business comes, it will be icing on the cake.
they are doing fine. read the announcement closely.
"As a result of the revised outlook for revenue, management now expects a slight operating loss for the year in the range of 2 -- 3% of sales."
If we double 6 month revenues we'll have about $61 million for the year, 2% to 3% would be operating loss of about $1.5 million and currently we are at a loss of $2.4 million - implication is that for the remainder of the year we'll see an operating profit of about $1 million. This is important - as also indicated in the announcement, margins are improving and outlook is better. Sales of new products are slowly rising, and eventually government sales will come back - when they do, the company will be solidly profitable.
Yes, it is difficult playing the waiting game, however, overall operationally things are getting much better as we move forward. The balance sheet is still solid and improving.
Thanks for that ... a settlement to put this to rest and behind them is certainly good news. Both parties probably came to their senses that it does neither any good to continue expending legal fees on this and dragging it out.
Met estimates on top and bottom line. PFS is a great place to put your money at this time - solid earnings, respectable/secure dividend, good growth coming.
The market is going to be turbulent and likely head lower between now and year end. Banks and financials like PFS are going to be a safe haven providing good returns now through the dividend, and great returns going forward as interest rates trend higher.
PFS is doing a really good job, being cautious in its lending and capital deployment, and is growing steadily. It's where you want to be at this time.
Keep your head on straight, and use dips in the share price as an opportunity to pick up more shares cheaply.
Very strong in all areas.
Shares are very cheap here. Stock dividend and/or increase in the cash dividend is likely coming within next few months.
AROW is in a position to be making acquisitions, or to be acquired.
see 424B3 filing this afternoon.
This prospectus supplement supplements the prospectus dated June 16, 2014 (the “prospectus”) and forms a part of Bay Bancorp, Inc.’s Registration Statement on Form S-3 (Registration No. 333-196568), which registered the resale of up to 9,239,143 shares of the Company’s common stock by the selling stockholders named in the prospectus. This prospectus supplement provides information with respect to 29 new selling stockholders who received an aggregate of 5,483,116 shares of the Company’s common stock covered by the prospectus from Financial Services Partners Fund I, LLC (“FSPF”), which was named as a selling stockholder in the prospectus, and removes FSPF from the table of selling stockholders. These new selling stockholders were owners of FSPF and received the shares for no consideration in connection with FSPF’s liquidation. FSPF similarly distributed an aggregate of 3,662,532 shares covered by the prospectus to its other owners (the “Non-Electing FSPF Transferees”), but they have chosen not to participate in this offering. The information contained in the prospectus regarding the selling stockholders other than FSPF, who own a total of 93,495 shares covered by the prospectus, has not changed. Information regarding the Non-Electing FSPF Transferees is not included in this prospectus supplement and they are not named as selling stockholders. Thus, this prospectus supplement covers the resale of up to 5,576,611 shares by the selling stockholders named below. Because FSPF was the Company’s majority stockholder, this prospectus supplement also deletes a risk factor contained in the prospectus relating to the concentration of ownership in FSPF, which is no longer applicable.
"Sidoti seems to be giving us a warning about possible lower prices. Others here may disagree and dislike the fact that I'm mentioning it but just by reviewing their web site, they seem to be under no pressure to do anything but provide research. "
What happened is perfectly clear. Sidoti did nothing but read the headline and shoot from the hip, plain and simple. If you give credence to that type of "coverage", then more power to you. What I've learned is that it's the kind of stuff that shock journalism is made of. I think back to when another big firm put a similar type of rating on Royal Caribbean Cruise Lines when it was trading at $5 not so many years ago. The company and stock price performance since that day speaks for itself.
So, if you look to such dramatization from the only firm providing coverage, that they provided absolutely no details of specifics why they issued their downgrade and price target before having any details from the company, then again, soak it all in.
You will see Sidoti move back to a buy rating with the prior $2 price target they had when the company finalizes and submits the filings - with absolutely no material changes having taken place during the period. I will bank on it.
Earnings release this morning of 17 cents/share for the quarter implies about 68 cents/year putting current PE at about 10. For a bank not paying a dividend, this is reasonable. I own another small bank trading at the same PE and paying 3.6% dividend.
Should they initiate a dividend, even a small one, or show increasing profitability going forward, then a higher price could be justified.
For now, I'd say hold - wouldn't be buying at the current price.
Banks got hit good today, CZNC included. This afternoon CZNC declared the quarterly dividend and renewed the share repurchase program. Shares were up the past couple weeks trending to $19.50 in anticipation of the dividend. Now you can get the shares below $18.75 with the 26 cent dividend coming in the next two weeks - that's a quick 5%+ between the dividend and discount to the share price just a couple days ago.
As interest rates will trend higher over the next 2 years, this will provide higher profits to banks. While most other companies will see their earnings and share price go lower with higher interest rates, banks and financials will be the beneficiaries.
Grab bank shares and lock in your dividends while the shares are still low. As profits and the share price rise, so too will future dividends.
Purchase slowly as the shares can go lower, and diversify across multiple banks. Don't simply chase dividends - be sure of the asset quality and strength of the balance sheet as well.
how many shares were you able to get? couldn't have been that many - was it?
I will wait for a lower price. if I can't get any lower than $1.50 I won't buy - doesn't pay for what I currently have already invested and my basis.
not really a surprise press release. actually standard procedure in these types of situations, especially when you have good/strong management. the surprise is that the firm providing analyst coverage did not have the common sense to wait for the press release or clarification from management providing more details. they simply jumped the gun, made a downgrade and assigned a price target with absolutely no facts to base it upon.
what is important to keep in mind here, is that this was caught fairly quickly, the impact is negligible, swift action is being taken to remedy it, and this will make the company stronger going forward. it shows that the audit processes are working and the auditors certainly earned their fee this accounting cycle. what we can be happy about is that this didn't go unnoticed or swept under the carpet. that is how companies get themselves into very big trouble - they need to go back and restate everything for years, and then it really is a major problem.
as most expect, we may see some near-term turbulence, but with one or two new contract awards, a few months from now it will be a faded memory.
I thought I saw August somewhere...or maybe my mind just inferred that as I see in the earnings announcement he said the product would be on the shelves in the fall.
In any case, we should see something regarding it before it is actually on the shelves...whether a press release, TV commercials, or something on the website.
Thanks for your detailed inputs micromaven - let's hope cooler heads prevail when trading opens tomorrow. If not, we'll need to decide at what point to be buying more shares.
News release looks good for as much as can be said at this point.
Comparing with 9 month results, it's looking like Q4 revenues are between $17 million and $18 million and bottom line is anywhere from a loss of $800,000 to a profit of $150,000.