I'd be more optimistic than that. But this is clearly now in the company's hands to deliver or not. The backlog and order rates are there. It's all about execution. As you cite, they have a spotty record in that regard. Another earnings disappointment may put them in the deep freeze for a long time, so the March quarter is critical, an inflection point IMO. You can ignore SA in general, they are almost always "talking their positions" long or short. If they really liked it, they would be quiet and accumulating, not trying to buttress their case. They are usually setting up the "other side of the trade".
Creed, valuation will be okay if they start producing both earnings and cash flow from helix. You have to remember to back out the nearly $4 cash per share from both earnings and cash flow multiples as it produces next to no earnings or cash flow while it sits on the Balance Sheet, but could ultimately be deployed internally or externally to do so. As for Helix, they just have not produced any positive numbers yet to turn the net losses to net income. Hopefully that will come but it has been one hell of a wait, like about a decade, for betting on the come w/nothing to show bottom line as yet. Credibility is becoming an issue, particularly as former key executives have left just "before the turn". We'll see. The cost structure is hurting them w/the low revenue volume.
This stock has been hit w/everything except the kitchen sink: Insiders departing, insiders selling stock, two difficult quarterly reports in a row, a complete negative blitz on 3D by the financial periodicals and t.v. financial networks, a nearly one-third decline in the share price from early January. What else could they possibly throw at this to try and knock it down?
You would have thought that Barrons article focused on PRCP and not DDD. Getting a bit silly now and close to an overreaction?
Maybe both. There has been a lot of insider selling for sure. But Barron's, CNBC, Bloomberg have been applying tremendous negative pressure to 3D. Whether it is that or the COO and a director selling, there are forces converging like a Rhonda Rousey armbar to get investors to cry uncle. Eventually the negative pressure applied is just too much to take. The marginal trade here is a sell, and that sets the price, even on low volume. Even the true believers are seemingly afraid to step into the negative swirl and increase their positions. Buy and hold doesn't set the price, the marginal seller or buyer does. The timing of the insider selling is curious, coming just before the end of the quarter. Those willing to "look over the valley" seem willing to stand pat, not double down.That doesn't really help the stock much.
too bad, because PRCP has absolutely nothing to do w/3D printing, but the shorts have Barron's in their pocket and you can't fight that. It provides an excuse to sell that's all. Call it a "negative halo effect".
thanks, I assumed that was the case. I was concerned the high dividend income would be considered passive foreign income. I guess since the income is derived from operating drilling rigs and not from some paper financial instrument or investment that is why it escapes the PFIC designation.
It is foreign, but it is generating active income rather than passive income as far as I can tell. However its assets are generating dividends equal to 100% of free cash flow. Not sure if it escapes the PFIC designation which brings w/it onerous tax rates and filing requirements and adjusted cost basis calculations. Can't find anything regarding it being a PFIC or not being a PFIC in the press releases or documents on the company's website.
Not sure about the company, but you have been 100% right on the stock price, and in the end that is what matters. Kudos to you. Credit where credit is due.
I think Armstrong is a smart guy. Ultimately he will have the right guy in place. He has 100,000 reasons to do so.
Don't you want your operations chief in a company like this to be a technological innovator, an engineer, or someone w/line management experience? Sales and marketing guys are typically very good at sales and marketing--not managing people, new product introduction, technological rollout to other industries, etc. In short, sales and marketing guys are not operations guys. In fact they are about as far a field from operations as you can get. Obviously he's good at selling, he's good at selling his own stock and getting that out the door.
They should just cross the small remainder of his holdings as a block with one of the institutional holders and finish it and remove his overhang if that is what he wants. Good riddance to bad news.
Not concerned about what he did with the money, to each his own. More worried if he has a sense for the current quarter and that motivated the sale.
I think there is going to be a lot of decommissioning work in Japan. Just how PESI is going to be involved and how much work they might get is an open question. If it's just consulting fees, it's a yawn; if it is involvement as a subcontractor actually completing the decommissioning, it could be exciting.
Longer term, if Helix works and if it is adopted, all will be fine. Near term, insiders are confusing the issue w/ actions that speak louder than words, and run counter to their espoused positive tributes on behalf of the new technology. If the Helix pop really is right around the corner and the best thing since sliced bread--- they should not be selling stock, neither directors nor executive officers.