See news this morning - PDII has already responded saying they are not for sale...their overpaid management obviously looking to preserve their paychecks/packages.
This has Eberwein written all over it - he is simply using DRAD as the vehicle to accomplish it instead of doing it on his own.
PDII is in a similar position as DRAD was two years ago. In going after PDII, Eberwein is simply looking to do the same thing - acquire the revenues, and cut the costs to increase margins. I think the first thing to go in a PDII acquisition/merger would be their overpaid management. Based on most recent financials, PDII is trading below cash value, however, as you rightly point out, they are bleeding money. The only way it could be pulled off is if PDII management were given golden parachutes to leave, otherwise any advances by DRAD will likely be rejected (which DRAD shareholders should be happy about).
I think a combination of cash/stock will be extremely dilutive to DRAD shareholders - drawing down cash, issuing shares (at what will likely be lower than what DRAD shares are trading for today), and then having to pay dividends on those new shares. PDII shares are trading ridiculously higher in pre-market (though only a miniscule number of shares), and DRAD investors likely would not be happy with an acquisition of that size at this time.
Eberwein should just go after PDII on his own using his fund's investment dollars and not those of DRAD shareholders.
I think hweb2 called it.
Nothing special during the quarter.
Shares will likely go sub-$4 again between now and year end. I'll buy between $3.50 and $3.75 when tax selling kicks in.
Clearly the market was anticipating a disappointing quarter. Obviously the results were attributable to lower communication systems sales and government purchases.
If there's anything positive, it's the increase in commercial sales and continued good cost controls.
End of government fiscal year is this week, so hopefully some end of year purchasing will help in Q4.
I think there will be good buying opportunity for the shares the remainder of the year. Question becomes how hard will be investors be selling off with year end tax selling, and how aggressive will company be repurchasing shares?
Now would be a good time for Mike and Phil to step up with their own significant share purchases.
I'm cancelling my GTC buy orders right now and moving them lower.
and higher yoy income taxes
the quarter wasn't bad at all, but as someone else has indicated, the press release and how management presented the information could/should have been done better.
consider this an opportunity to pick up cheap shares while others are simply tossing their shares for no reason. I'm adding more here and lower. Unlike most other things in my portfolio where I need to constantly review and think about them, I'm very comfortable with CCUR and sleep well with it.
good - and 11/6/2014 is next Thursday.
obviously alderson didn't read the press releases, and neither did I, yet I came up with the correct date.
more likely, at some point sooner, they will tie up a partnership with someone who will provide a cash infusion and interim milestone payments.
At least as far as the tax/finance segment, don't you think that it is already crowded between Intuit/Quicken, Microsoft, Oracle, and other accounting software companies? They've all been moving to a cloud model the past several years.
As far as operations, I know there are a few heavyweights - one of Marc Andreessen's startups was wildly successful and sold for a huge amount of money. I'm also guessing that Microsoft, HP, Oracle, and IBM all have solutions that address the area.
I think CCUR needs to continue focusing on its own area of expertise, look for strategic acquisitions (ADGL for example - my lottery ticket investment), and stick to its core business.
CEO buying shares over past 6 months and last month at higher prices, business strengthening and fundamentals improving. I'm looking for 50% gain at a minimum within 6 months.
if you have a moment, go check the trades today - every time someone sells at the bid, someone follows with a buy for 100 shares at the ask.
I was selling other stuff into the strength today. will be interesting to see how the market performs tomorrow and the remainder of the week.