my last post was not accepted, i guess... here goes again
6-12 month price target: $0.33 (based on 1.0x HH's current year estimated sales of $42 million). Subtracting net debt of $2 million gets you equity value of $40 million; divided by 120 million shares (rounded up) gets you $0.33 per share. Don't forget you probably have about $15 million of value from NOLs as well, which limits true downside in this stock in my opinion now that we have resolved liquidity issues. I think this is a very realistic target, especially if HH returns to cash flow + and EBITDA + in 2016 as management has guided.
3 year price target: $1.67 (if HH hits $100 million of revs in 3 to 5 years and is profitable, then you can assign a higher sales multiple)
He will have to buy his shares from someone else; like Bard Associates, for example... lol!
i'll admit, i gave one of the thumbs down;
I don't disagree with the factual nature of your statement; i just don't think it matters at all if a person is investing in this stock over a relatively long-term horizon.
your comment is probably very relevant for day traders, just not for me
Bard's "sweet spot" is micro- to small-cap stocks, and they tend to do "deep dive," very thorough, fundamental research on the names they add to their portfolio.
On 2/2/16, Bard Associates reported owning 11,170,750 HH shares, or 9.5% of total shares outstanding.
These guys have a good track record and are shrewd investors. Nice to have their endorsement.
i agree, there could be a little profit taking here; besides management, a lot of these guys who participated in the rights offering are long-term fundamental players who are fully behind the story (versus "traders"); still, definitely some people have traded around the rights offering.
personally, i am not taking anything off the table prior to next quarter's financial results call
Per 1/27/16 Form 4 filings, over $520,000 worth of purchases from the following insiders:
Aprahamian Ronald, 4,444,4444 shares
Dubois Henry Edward, 936,784 shares
Ferguson Larry Richard, 133,874 shares
Watford Thomas A, 122,480 shares
Balthazor Steven R, 56,967 shares
Emkjer Mark, 80,704 shares
lol for the third time today! Rkill49 - your comment is precisely an argument for why the stock WON'T go back to 6 cents; those institutions got out at the end of 2015 and accelerated their selling prior to year-end for tax reasons and also at the time the rights offering was announced. the selling pressure is over; those who wanted out were forced out when the right when the rights offering was announced
lol again! a reverse split, whether it happens or not, has nothing to do with the company's fundamentals and does not change the company's fundamentals in any way whatsoever
A few reasons why I am optimistic about holding HH for the duration of 2016:
* tax-season selling is done
* selling pressure from rights offering is over (any large holders who wanted out; likely are now out)
* management and insiders have increased their positions meaningfully through the rights offering
* de-listing risk has been addressed
* liquidity situation has been addressed
* the old legacy businesses have been sold
* the new business has been streamlined and the ongoing platform is set for strong organic growth
* a return to positive EBITDA and cash flow is well within reach
* management will be hitting the road to introduce growth story to new investors
* the company has valuable NOLs that will shield taxes (and provide downside protection)
* if mgmt hits $100 million in sales over next 3-4 years, at 1.25x sales, this could be a $1 per share stock (not a stretch)
It will be interesting to see how many shares the insiders purchased. Believe me, management would not have exercised a single share, or structured the financing in this way, if they did not believe that things were looking favorable for HH in 2016 and beyond. Anyone who bought HH shares around the rights offering and/or participated in the offering will be well positioned to make some nice capital gains in my humble opinion. Good luck to all.
search for "may 8" and you will find the appropriate text
I can assure you they did not miss the deadline...
The key date is May 8. But they should be fine after the rights offering. From Prospectus:
"We must increase our shareholders’ equity by May 8, 2017, to avoid a delisting action by the NYSE MKT... As a result, we must submit a plan by January 8, 2016, to regain compliance prior to May 8, 2017. If we fail to submit the plan or to fulfill it in the allotted time, our shares may be delisted from the Exchange... We believe that successful completion of this rights offering will enable us to satisfy even this higher shareholders’ equity requirement, but if we fail to raise sufficient shareholders’ equity by May 8, 2017, our shares could be delisted."