"How the Hel_ did it ever run up to 3.40?"
Look in the mirror - novice "investors" like yourself who trade on headlines and momentum with no understanding of the company, business, or product.
"So this is a way to gain some cash. However, if they thought the stock was going to move up significantly in the near future, maybe they would forego the case now, but for the CEO and his family what is being sold is a very small percentage of their entire holdings."
I think you have hit upon a key point here.
An argument can be made that he is having the company buy back his shares to raise money so he has enough to make an offer for the remaining shares in the float.
In any case, whether it is his shares being repurchased, or shares from the public float it is reducing the outstanding shares and as profits come over the next few quarters this will only further increase EPS.
From a shareholder perspective, let the company repurchase his shares at prices below $4 - that many more shares that can be repurchased. We do see the bid show up for the 10k shares, so any shareholder is able to unload their shares should they so choose.
"Net income totaled $7.5 million for the fourth quarter of 2013, compared to $943 thousand for the same period of 2012. The significant increase in earnings was primarily a result of the reversal of the valuation allowance on net deferred tax assets which decreased income tax expense by $4.8 million. In addition, the Company recorded a recovery of loan losses totaling $3.0 million, "
So, if net income was $7.5 million where $4.8 million was the valuation allowance/tax credit and $3.0 million was recovery of loan losses, what was operating income for the quarter? Look's like a loss to me.
One other thing - do you like banks? I've done extremely well with smaller community/regional banks this past year as the valuations were all screwed up while their earnings and asset quality was strengthening. My big winner was UBMI - was acquiring down in the $5s mid-year, doubled up when tax selling took place last month, then first week of this month they got a buyout and shares jumped to $12.50. I'm totally out of it now since I had well over 100% gain in just 6 months.
Anyhow, have a look at CSBB and BVA - both are extremely low floaters. CSBB simply has good earnings/growth, financials, good insider buying, pays a very decent/stable dividend which has room to grow. Proper valuation is probably 50% higher than the stock price. Could very well be a takeover candidate in 2014.
BVA is story stock/bank/company. Go read the last quarterly filing and browse the website of the holding company. They've been profitable past three quarters, are doing good now, and are about to begin their growth plan. The guys who created this are all industry veterans. This is a bank currently trading over 15% below tangible book value - that is unheard of for a bank. Go look at what the enterprise value is - a joke. This will be a big winner - currently trading near lows - a few small sell orders can push it lower. Even buys - the market maker just orders it to take it lower. You buy 1000 shares at the ask, he will follow it immediately with 100 sell at the bid. Eventually it will break higher as well.
Anyhow, if you do like banks, and ones that are financially in good shape and poised for growth, check those out.
You know this is my non-nip id...just try to keep less desirables from giving me a hard time all over the place.
I'm glad you have shares of ULBI - I have no idea when this will bust out, but it will. This is one of my top holdings and people just like to ignore it - which is fine by me. Lots of people must have gotten burned in the past seeing the way it trades. The shares will easily double, probably triple from here once a couple good quarters are announced. I'm sure you like the financials as much as I do. Add on the insider ownership/purchasing and there isn't much not to like. ULBI has excellent products, really good customer acceptance of new product introductions, and they've done well over the past 6 to 9 months considering the state of things. Now with the government purse strings loosening, you just know that there's additional government money flowing to them. Just a matter of when it hits the bottom line this year. There are also new product announcements coming I'm sure.
Anyhow, this one you can safely sit onand not worry about - but try not to get caught up in the share price gyrations - it will be all over the place. Then the week leading up to earnings, it will make a big move up...and generally gives it all back afterwards - regardless of what they announce. I know that's going to come to an end one of these quarters and the shares are going to keep going higher.
Anyhow, if you hadn't noticed, the market maker here is as bad as, if not worse than over at LTRX. Paints the tape for a lower close most every day - even today. Anyhow, glad you're here.
$3.43 ... 382 ... NSD ... 16:00:00
$3.43 ... 100 ... NSD ... 15:59:45
$3.52 ... 100 ... NDD ... 15:41:45
$3.514 ... 45 ... NDD ... 15:39:02
$3.514 ... 100 ... NDD ... 15:39:02
$3.514 ... 200 ... NDD ... 15:39:02
$3.53 ... 45 ... NSD ... 15:39:02
$3.53 ... 100 ... NSD ... 15:39:02
$3.52 ... 400 ... NSD ... 15:39:02
$3.529 ... 755 ... NDD ... 15:39:02
$3.53 ... 200 ... NYE ... 15:39:02
Yep, that $1.03 was really a great opportunity.
Let's discuss that thought again when the shares are at 0.93 in the next week or two.
You folks can sell all you like and drag the price down no matter how small a trade you make - fine by me, I've been through this before with FXNC and UBMI. You are scaring yourselves out of money - and that's fine by me. You want to take it down to $3.50 or $3.00 - go for it - the shares will still be well over $5 during 2014. This is typical for a small floater.
Maybe nobody has told you in the past, so I will - the objective here is to buy low and sell high. Look at the chart - $4.00 is low.
Don't make a fool of yourself.
Sorry - you are correct. I was looking at the filing date on the 10K - I see that the 8K with the results was filed four weeks earlier.
I also think that the yoy quarterly comparison ($16,500 vs. $13,994) is not really a fair/valid one because revenues were abnormally lower as a result of the hurricane in 2012. So, the yoy quarterly increase is not as dramatic as it appears at first glance. That was also indicated on the call.
Did he invest in IBM? Is it one of his largest positions at this time worth over $12 billion? Is IBM not a technology company?
"Revs. have been, in 000's dollars :
13,994 15,883 17,030 16.500 over last 4 Qs "
You've left off a quarter - last quarter was 17,027 so last 4 Qs are:
15,883 17,030 17,027 16.500
That changes your discussion/conclusion a little.
" tangible book value is now $4.89"
Correction - tangible book value is $4.69 - typo.
Still - shares are wildly undervalued and should be closer to $5.00 than $4.00
Now they are solidly profitable and at the very beginning of long-term growth.
Buy now and continue if uninformed people want to continue selling pushing the shares lower.
They met EPS estimate, but backlog is down.
Will be interesting to see where the stock goes tomorrow. Could see $2.10 again before heading higher.
It's a solid earnings report, but wasn't a home run.