Just bought in yesterday. CDI appears profitable. The shadow stock model endorsement is good with me too.
Sentiment: Strong Buy
Bob, agreement with everything you stated. We are pretty much in the same boat.
KZ proposal is priced much too low, IMO. However, I am so tired of KZ and its board. I finally capitulated and placed my share at out of the money at $9.50/shr. I think KZ is worth lots more, as I didn't sell even when KZ was $14/shr last year. I am ready to sell KZ far below what I think it is truly worth.
I am fairly certain the proposal is going their (the CEO) way. They have majority of the control/sway of the board.
Alcoa Reports Solid Second Quarter 2015 Profits
4:03 pm ET July 8, 2015 (BusinessWire) Print
--Net income of $140 million, or $0.10 per share; excluding special items, net income of $250 million, or $0.19 per share, up 16 percent, year-over-year
--Revenue of $5.9 billion driven by strong organic growth in aerospace, automotive and alumina businesses
--Record Engineered Products and Solutions after-tax operating income of $210 million, up 4 percent, and aerospace revenue up 29 percent, both year-over-year
--Global Rolled Products after-tax operating income of $76 million, up 9 percent, adjusted EBITDA per metric ton up 18 percent, and automotive sheet revenue up approximately 180 percent, all year-over-year
--Alumina after-tax operating income of $215 million, best first half profitability since 2007
--Primary Metals after-tax operating income of $67 million, as Midwest transaction price declined $527 per metric ton, or 22 percent, year-to-date through June 30
--$324 million in productivity gains across all segments year-over-year
--Cash from operations of $472 million and free cash flow of $205 million after $300 million natural gas supply prepayment for Australian refineries; $1.3 billion cash on hand
Interesting! In hindsight, this volume increase signal that the Private Buyout info was already leaked and acted upon.
Until June 29th, the company did not acknowledge recieving a letter dated June 29, 2015, "announced that its board of directors (the "Board") has received a preliminary non-binding proposal letter, dated June 29, 2015, from Mr. Leilei Wang, chairman and chief executive officer of the Company, and IDG-Accel China Growth Fund II L.P"
How is $8.56 even remotely reasonable? The company has no debt to speak of, cash on hand over $165mill and a Book Value Per Share (mrq): 7.16.
Portfolio of games are finally bringing money; Their games bring in approx $90mill/ qtr. additional Game development are in their last stage to final launch.
Long term holder of KZ here; Not being greedy. IMO, KZ warrants a much higher price than $8.56 offer. KZ has no debt to speak of and their "portfolio" of games are finally building up to be noticed.
What assurance is in place that shareholders get an honest/fair prices for our holdings. I've held onto KZ over the years expecting a break out. Just as the complements of games and wvas is finally coming to fruition, the CEO decides to take it private?!!!
Mostly neutral....however, there is a slight bias toward the positive.
As I see it, the creditor decided the shares ($30 - $34mill worth) had more value than the actual cash/loan and therefore they excercised their rights in the hopes that this investment would re-coup far more money than their original load.
Conversely, on the negative side, Forgame exhibited their inability to forecast their revenue stream to pay their obligations timely.
What is the significance of this announcement?
It appears Forgame didn't follow thru with loan repayment(s) and the creditor decided to exchange the loan for the worth of 5mill collateral shares (th"Relevant Shares") (representing approximately 3.99% of the total number of issued shares.
"Management has no respect for their shareholders."
What brings you to that conclusion? What should they do to show their respect? Any suggestions on how they go about achieving that goal?
You may be right on the correction - or not..... Just wishing because I hate to see NTP go down further. If it does, I can't bring myself to average down anymore. These small Chinese companies aren't showing strength like in prior economic cycles.
@KZinvestor, regarding "disappointment w/ management......uninspiring .....can't get it together..."
What do you propose they do to improve? I am interested and mgmt is open to your thoughts at their next upcoming conference call in March. Call in and share your ideas.
Same here. :-/ It's nuts. No debt to speak. Profitable business growing revenue, even promising partnerships haven't given KZ a permanent lift.
Wish I understood why the market shows so little interest in KZ.....
Here's wishing the market discovers KZ to prosperity!
It's become clear KZ intent of investment is for: 1) Strategic alliance, 2) investment in conservative company with $189 mill and $0 debt!
Through its strategic investment in Forgame, KongZhong expects to explore the synergies between KongZhong's Mobile and Internet game businesses and Forgame's strengths in (1) mobile game development and distribution in both mainland China and overseas, (2) its large portfolio of mobile game intellectual property (IP) licenses, as well as (3) its web game distribution (including through its game publishing platform 91wan).
As of June 30 2014, Forgame had a total of approximately RMB 1.12 bn of cash, cash equivalent and short-term deposits (equivalent to approximately US$ 180 mn), and no debt.
Nightmare is an exaggeration. However, you are right; a positive, such as a large (13%), dividend payout, did nothing to improve the stock price or immediate company valuation.
How or what should I look for in a well-run business to handle the payout? What should I expect?