Yeah, Dorman will do just fine. A lot of parts that they make are not discretionary repairs. If you have a water leak from your motor from a bad OEM design (or some other problem as the case may be) you either fix it or you start walking. Considering you can spend 50-grand on a Ford Explorer now, and that's just one random example, it's certainly not a bad idea to fix fix fix on a 5-15 year old car. It saves a fortune, and a lot of those older cars may not even have some parts available at the dealer counters. IMO Dorman is an incredibly secure company with low debt levels and they are pandering to a captive audience. Anybody who is short here is probably not too keen on the nuts and bolts of the auto parts business, and they will be wrong over the long term.
My response to that would be the fact that these warehouses have a damn good idea of what product they are going to be able to move, and they aren't going to fill the supply warehouses with items they can't move. I can personally ask what the monthly sales are at the "O" here in town, (which happens to be on of the top performing stores out of all of them by sales volume) and there is literally NO reason why demand for plastic intakes, clips, small problem parts, etc. should drop. There are a million plastic parts on cars now and they almost all eventually crack, that's where Dorman steps in in a lot of cases unless you want to pay a fortune at the dealer counter for OEM parts.
Yeah, they will dilute again, but they will be able to get more financing IMO. If investors with MC decide "enough is enough" though, look out, this would be bankrupt within a matter of months.
Yeah, I felt good about this in the low 40's, this is an even better buying opportunity as long as there isn't something "weird" or dishonest that has happened operationally. Dorman continues to roll out more and more products and with the prices of new cars, people will keep repairing the old ones. I know several management personnel at the local O'reilly's and they have commented that Dorman has really expanded their catalog dramatically over the last couple of years.
There is plenty of potential for VOXX with developing technologies, it's cheap based on forward earnings expectations too. It's a buying opportunity. Stocks like this go up and down quite a bit. Just look at the chart over the last 5 years. It will probably be overpriced eventually too if that makes you feel better. lol
I think there are some exciting things on the horizon for VOXX!
I won't lie, I am breathing a sigh of relief that Mr. Lavelle addressed to Q4 results and that the stock price recovered a little today.
I think the 360fly camera could be a big positive for VOXX. Just look at the success of Go-Pro cameras, and I think the 360fly could offer some big advantages..... The Go-Pro attained a lot of success from the automotive community (drag racers especially), but you only have one still frame with a go-pro, so you could never really see what was happening if a car was passed etc. The 360 camera would allow you to side mount it to the car be able to see what is going on the entire time.
Klipsch is making some good moves. Promotion and improved product line.
OEM automotive has done well.
There were simply a plethora of one-time events that occurred in Q4.
The earnings transcript I read yesterday said earnings for fy14 was $1.28 excluding the charge offs. I haven't listened to the conference call yet.
I saw the 21.7M number yesterday too though. It's clear there were people trading on inside information. Just look at the chart.
Let me restate something. VOXX, without the goodwill write-off, earned $1.28 per-share for fiscal year 2014. EPS of $1 is likely a conservative estimate going forward considering they have reduced debt levels and taxes with the goodwill write off.
I think a long position at the current price will do fine. VOXX is probably a $.90 to $1 per-share earning company with normalized earnings. They are showing a lot of red for the last quarter, but it was a non-cash event that will reduce their tax bill for the year.
It makes sense. One of the former Klipsch execs was dumping stock recently. This stock will get whipped, there will be an opportunity to make money though now. Wait until the blood is in the streets and buy, and today there will be blood in the streets believe-you-me. I wouldn't buy immediately though, I'd wait for the down momentum to stop, and it may not stop until $5.xx per share.
It's hard to stomach a decline like this, but if things were always flat, you'd never have a good buying opportunity.
You might be able to buy this worth the money now at least. It's back down close to tangible book value. At $7.xx it's a good deal.
Look out below. This will be an ugly summer for this stock. They impaired 2-bucks per-share, but like you said, this traded so far below their stated book value that the book value is out the window in virtually everyone's eyes. All people will see is a big red-mark at the bottom line and move on if they had any inkling of a thought of buying this stock....
Well, see you at 5-bucks a share.
I think those are all valid points, especially regarding your statements about others knowing more than you do. I really doubt that the preponderance of other investors know any more than you do. There are probably a lot of them that aren't as well informed.
The loss of a major OEM automotive contract would be a material negative, but even that event would only account for a fraction of a division of the company that produces about 50% of their past revenues. I don't even know that the OEM contracts are a bigger piece of revenues than they make on aftermarket automotive parts. I really doubt there is any single client that could justifiably result in a 40-50% devaluation like we've seen in the share price. In my opinion, VOXX would have to throttle its entire automotive division to make the current share price look reasonable.
I'll be bold and say this..... Klipsch, alone, is probably worth the entire market cap that VOXX is currently trading at. Hell, if Dr. Dre's "Beats" is worth $3.2B, Klipsch has GOT to be worth more than $248M, which is VOXX's entire market cap now!!