the only real question I'd have is whether it has some collateral impact on the loan covenants as regards maintaining certain levels of net worth (tangible equity) or ratios related to tangible equity. Still, this is a company in both managerial and board disarray fighting for survival. They seem rudderless and really need to get their act together. Better of in someone else's hands or going private. The travails are seemingly endless.
doesn't seem to be a big deal. not an accountant, but it seems to be an accounting decision by the auditors to be more conservative. kind of like the reversal of a prepaid tax asset if I understand it, not really an operational or near term cash hit. So why did it take so long to release the news? Probably they were arguing w/ the accounting firm over how much of an allowance they really needed to take. IMO probably the least bad news you could have. don't really mind the accountants being more conservative. stock trades near book value w/the adjustment. ho-hum. back to the main issues: returning to profitability and monetizing Predictor.
If the bank does not have a sense of humor about the missed SEC filings deadlines and decides to call the debt---they are likely toast.
Obviously it's probably not something simple, like company A buys company B for X amount of dollars. Feels like something that takes time to spin. All the resignations, all the missed filings, the CEO position being turned down by Gunter---just read the headlines over the last 24 months. Hard to be optimistic, but maybe they can pull a rabbit out of the hat.
It's been up really strong lately, but maybe some investors are concerned about the timing and delay of any government contracts/spending decisions given the partial government shutdown of non-essential services. Any freeze-up would be most unwelcome. Expect they will address it on the next CC or sooner if it is an issue at all.
halted under a T1 trading code which means its halted pending the release of material news. it's been halted for nearly 4 hours. I can find no other publicly held similar medical device/healthcare or manufacturing company similarly halted today (that might constitute the other side of any possible transaction). I therefore assume it's very company specific, BWDIK
perhaps something as simple as a halt before the (delayed) release of the 10Q. It comes within about two weeks after both the CFO and a director on the Audit Committee resigned. Been halted well over an hour-no surprise there.
stock used to trade above $7. record revenues just last quarter and now they barely trade above $5. frustrated investors dribbling out shares are settling the price .
well, the only other alternative I see is for FA to force both a board and management reconstitution, step into the picture to run the business themselves or appoint nominees on their behalf to do the same. I still think it is more likely the business gets sold. Either way the market knows that they are in a difficult and less than liquid position w/their share ownership and will exert its force upon them. I don't think the stock price trips a new yearly low, but if it starts to move under $5 they will have to consider how much longer would tolerate that. Don't see any PE firm wanting to hold such a position indefinitely as as some sort of trophy. And no one else is going to bail them out, no one moves to buy this stock in the market to any significant degree until their position is clarified.
receivables, inventory and planned capital expenditures all just disclosed in the 10K released one day ago point to growth and an increase in the cash balance. The U.S. car makers are going to fall behind both Europe and the Japanese w/o using the Helix technology. they likely will not let that happen. China and the U.S. are the markets to watch for a change in the inflection point 2014-2015.
even without net operating loss carry forwards, the co. should still be able to do about $1 million annually, plus or minus a bit, in free cash flow. They are debt free w/ over $1 per share in cash (which could increase about $0.35 per year given the steady can cow nature of the business). Growth prospects are there, but limited as the company is currently structured (unlevered and management w/ little equity stake or incentive). But the margins are strong and there is some strategic value to the business (moat- reflecting a protected geographic niche and the time and cost to start-up and license a business from scratch). So the value is probably there but it will be hard to unlock w/a "blocking stake" by the private equity firm.
But their alternatives are limited. Smart guys don't want to shoot themselves selling a big stake in the market piecemeal. Nordion only did it to disentangle the conflict of interest being both supplier of Cobalt and financial backstop to VIFL in tough times while also selling cobalt to other customers. Management has the most minor of equity stakes, the CEO makes only about $150K per year, the directors make a very small annual fee. The PE firm, the BOD and the executive need to put their heads together as smart guys and relieve themselves of the responsibility, time and effort of running the business for a relatively small return, generate an acceptable asset (sale) gain for investors, and move on. It's that or just hang out and hang on indefinitely. But someone else (younger and more incentivized) could probably do more w/the business over time. JMO.
10K just out too. Accounts receivable way up, inventory and anticipated cap. exp. is slated to jump too. Sounds like a company both in, and also anticipating, growth mode. As the receivables get turned that cash balance is only going to go higher, maybe by a pretty decent clip. The loan covenant (which they have not drawn on) prohibits more than about $1.8 million being paid annually in dividends. That would allow them to raise the annual dividend to a maximum of about $0.20 next year from the current $0.15 rate as the agreement now stands, but they could always seek an amendment to the agreement if they wanted to payout a larger amount either next year or in the years subsequent to that. They have enough on their plate for 2-3 years w/the auto industry and Helix alone so acquisitions seem a low priority.
So here's the question: They could seek to even double the current dividend amount to say $0.30 per share hypothetically and it would only require raising the authorized spending limit under the covenant from $1.8 million to $2.65 million. Cap exp., although going up significantly, is only expected to be about $2.0 million this fiscal year. Against that they have $26.7 cash on the Balance Sheet, $21.5 million of billed receivables (which is about $19 million in excess of payables which total only $2.6 million). Moreover, they are generating free cash flow from operations. So what are they going to do w/all that money?
Guess it's a very low probability, but he did resign, he did not have to sign the 10Q, the 10Q is still not out. What is taking so long? It's apparently just one issue having to do w/deferred taxes. Get a ruling, file the 10Q.
very true greenangold, now if he really wants to worry about quarterly comparisons it's not the first fiscal quarter he should be worried about anyway, but the fourth, the one just completed, now that will be a tough comparison. hope i didn't just open a can of worms.
looks like the shorts are going to make a quick buck here. wonder what they knew or if they were just cutting against the grain of an really positive article. also wonder where the hedge fund guy who wrote it and his buddies are now and why they are not buying the stock up. who knows, maybe they are?
looks like you had about 400,000 shares purchased in the few days right after the SA article. that investment was not Fort Ashford because no Form 4s were filed. It is also an underwater investment now, and could be a painful exit given the lack of liquidity here. could be traders who bought on the article or could be a couple institutions, you can't really tell. usually traders don't wait over a month to make their money, they cut their losses very quickly IMO. feels like more of an oops, we got into an illiquid investment we probably should not have gotten into, and now the exit.