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.
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.
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.
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.
See news this morning - PDII has already responded saying they are not for sale...their overpaid management obviously looking to preserve their paychecks/packages.
Wildly moving the bid/ask around with no trades taking place. Buy or sell a miniscule 100 shares and the bid/ask may move up or down by 10 or 15 cents.
Since the bottom did not fall out, I have to believe that most people who wanted out, got out over the past few weeks. Aside from that, I thought the conference call was very good - Mike explained everything very clearly and commercial sales and new products are certainly beginning to have an impact. Obviously it's a slow process to develop new products, field test with customers, and then get orders. However, from the sounds of it, all the products are premium top of the line and excellent quality. Hopefully that's going to translate into a nice recurring order stream from clients once they are able to use the products and feel confident to rely on them. I also liked hearing that the batteries for the healthcare market are beginning to gain market acceptance. I truly believe this could be a huge segment and the icing on the cake would be if they could somehow become the OEM for some of the manufacturers. Lastly, it was also good to hear that there are international customers purchasing.
Anyhow, looking forward you have to have good feeling about the future, even if the past few quarters were somewhat disappointing. The company appears to be doing all the right things, and it's just a matter of time to see the sales pick up. I think that we're approaching the point in time when government/communication systems orders will be viewed as icing on the cake as opposed to being something the company relies on to make their numbers.
So goes another quarter.
they cannot judge the offer to be inadequate and be holding out for a better one because nothing has been discussed regarding price. the point DRAD is making is that PDII simply gave a knee-jerk response that it's not for sale without even having a meeting to hear what DRAD's offer would be.
Check out PDII - DRAD/Eberwein is going after them. Financials stink but it is currently well below cash value, below book value. Director who was on both boards resigned from PDII board on Wednesday and DRAD sends letter to PDII after close the same day. Go read the news. I nibbled a little PDII and will buy more if it goes down further. Downside seems limited with a DRAD offer saying they'd pay a premium to market price two days ago.
PDII moved earnings announcement/call from Tuesday to Monday morning - should be interesting.
Read the letters between the companies - it's all very clear.
Understanding how Eberwein operates and the content of his letter this morning, you can be assured that DRAD is coming for PDII. Now, the only question left is will the PDII board simply sit down and engage with DRAD to hear what they will offer and make the best deal for PDII shareholders, or will this become a messy fight where PDII will cover their ears and not even listen?
Eberwein is very pro-shareholder, always does right by them, and creates value. PDII management and the BOD should start packing, because they are likely all history - just a matter of if they do right by shareholders, make the best deal and go quietly, of if they act like little children and go kicking and screaming.
Did you read the letters, or are you simply speaking off the top of your head?
"The PDI Board has also refused to return my calls to discuss our proposal."
analyst asked the question, obviously feeling awkward and CEO stated company's position while leaving the door open for DRAD to make a firm offer.
I think CEO stated the company position well - make a firm offer and we'll consider it.
My guess is that DRAD will come back with a firm offer, subject to normal due diligence/contingencies.
Should be interesting as I believe this is just the beginning.