They need to sign a deal for their breakthrough technology. They don't need more R&D than they are doing now. I'm tired of seeing PRs on patents filed and no PRs on sales deals. If the CEO says they have "lumpy revenue" yet again on Thursday, the stock price will fall back under 25. Growth companies don't have lumpy revenue, they have accelerating revenue.
If they can't sign anyone for their barcoding replacement technology, more R&D won't help. If anything, I hope they DO increase the dividend. It will give me some confidence that they expect to be able to support a higher cash payout because they expect revenue to grow and stay at a higher level. So far we have a great technology and lumpy revenue. Growth companies grow. I want them to show me the growth.
I haven't looked at the deal in detail yet, but I don't think that it indicates a conflict of interest. I believe it's an apples and oranges comparison of return-on-assets vs return-on-equity. As long as the debt structure after the deal is manageable and the deal is accretive to the bottom line, I say do more of them.
SNH fell from favor after their strategy shift away from Medicare/Medicaid dependency didn't happen overnight. They didn't increase their dividend in 2013 as they had in recent years. It takes time. I see this deal as a positive step in the continued implementation of their strategy. As far as I can tell it makes it more likely that they'll be able to raise the dividend, not less. For income investors, I don't see it as a "sell." Anyway I bought 100 more shares today. At 19 the yield will be 8.2%. I have more cash to invest if we see that price target!
Today was bullish, given that the overall market was weak and there was no news...not to mention the stock had already had a big move the past few weeks.
I agree, IMO it's going higher. Wall Street tends to get caught up in their group-think. So if the trade-of-the-day is to sell stocks, we could go lower. If so, it will be temporary. I'm in the "$100-per-share" camp.
...of where the bottom is or when the stock will rise. But there are only a handful of investment themes that I have been involved with in my life that have anywhere near the contrarian appeal of coal today. To investors and politicians alike, it is hated. So I have been adding - and if we drop more, I will add more.
I don't know what the circumstances will be to pull ACI into a bull market. If it were apparent, the stock wouldn't be struggling to hold $4 per share. But eventually it will happen. $15-$20 per share "some day."
Apple isn't a competitor to take lightly. So anything they come up with is a threat. Maybe I don't understand it, but I'm skeptical that "proximity marketing" is going to be that big. It had 0 impact on my decision to buy DMRC.
Are people in stores waiting to be lead to products? I don't think so. Online is a different story. But I think if someone is in a store, they aren't waiting for their smart phone to tell them what to buy. They are there to see, touch, and feel the product.
To me the wiz bang of the shoppers experience is speed. It's checking out and paying. If someone needs more information about a product, it's on the box. That's why they're in the store. Bruce says they can save the 10 largest retailers 1.7 to 6 billion annually by eliminating barcoding. At some point they'll be able to save them money as the customer pays.
Someone can jump in and offer their 2 cents worth, but to me "proximity shopping" has the feel of K-Mart's bluelight special. I'm sure it can have an impact of some sort. But how much and when is anyone's guess. On the other hand, barcode elimination is worth billions in hard dollars as soon as it's implemented. Unless Apple has that, I'm not concerned.
I know the difference between the median and mean. Look at my example of a golfer hitting 3 balls off of a tee and he gets to play the shot in the middle, or the median of his 3 drives. If the first drive is long and down the fairway - yes, I understand he still doesn't know the shot he will play. We don't know the median yet.
But it is incorrect to say that the first shot is irrelevant because it's not used. It's very relevant. If one of the last two shots is also great, he then gets to use a great drive. If the first shot is shanked, he has to be 100% on the final two to play a great shot.
If the long tail survivors were random - and it was luck that they were cured - then yes, I'd say they are irrelevant. Or if the vaccine only works on a handful of people (the long tail survivors), and not a large portion of the patients, that too would negate my logic. But if the long tail survivors are there because of the effects of the vaccine, then IMO it's an indication of the whole trial - meaning the whole curve shifts. And the farther the curve extends to the right, the farther to the right the median is.
dwiggd, good explanation of the math and the rationale behind it. But the long tail is a positive. One reason is the adoption rate of the vaccine after approval. Doctors and patients will look at 5 and 10 year survival rates.
Another reason is that it does move the median to a higher number. If a high percentage are cured or have a long survival, they aren't really thrown out. They're still affecting where the center is. If a golfer gets 3 drives from the tee and the best and worst are thrown out, it helps knowing that the first one was straight down the fairway. But I think I'd need to see the shape of the bell curve to be certain on what the long tail means.
I'm happy that I bought. But we must have received our tips from different people. I didn't get my tip from a gentleman.
I am replying to rational's post in a new thread because those imbedded responses get lost quickly. I hope Bruce addresses the adoption issue in his presentation tomorrow. In the past I believe he has said 7 years is the cycle. A new technology is different than an upgraded technology. It was more difficult to get people to buy their first PC than all the subsequent upgrades. So this should be adopted faster than barcoding was originally.
But I agree, we need to get this jump started. A group of retailers could get this to happen a lot quicker than DMRC and their partner can. The jewel of the group is Wal Mart. They have more employees than the next 3 retailers combined (that use barcoding) as I recall. If Wal Mart gets on board, they can dictate this to their suppliers in a relatively fast time period. Then it would become the standard.
The advantage to to retailers is huge - the number of employees, floor space needed, and equipment will be reduced. I don't know who is likely to adopt this first - Costco is a likely candidate because they are already doing business with DMRC. But Wal Mart is the key one to land, imo.
And there's more to this than just the speed of the checkout. The smart chips will be marketing tools. Tomorrow should be interesting.
Good to see the 2nd PR, too. Bruce makes his presentation on the rollout one week from today. Look for a PR that morning announcing a partner who will be using the scanner technology. If there is no partner yet (unlikely imo) then the stock won't do much. If there's a partner of any sort, which I expect, the stock will rise. If there multiple partners, and/or a major partner, the stock could rise a lot.
I guess we'll soon find out how good the barcode replacement technology is. Hats off to whoever thought this up!
We'll know more next week at the NRF show. But I'm very optimistic: "We have partnerships with a number of multi billion dollar, multi national, infrastructure owners; and those partners will be identified at the show and participate in the booth..."