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Gravity Co., Ltd Message Board

roboklerk 97 posts  |  Last Activity: 1 hour 21 minutes ago Member since: Feb 2, 2009
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  • roboklerk roboklerk 1 hour 21 minutes ago Flag

    I'm glad too. Gonna buy me a nice little cottage/guest house in Scotland real cheap over the next 12-24 months to spend a chunk of my retirement time there. Probably on Isle of Skye when the Pound drops to under $1.00 U.S. and the housing market crashes. Would love to buy in Iona, but nothin ever becomes available there.

  • just love them. Going to begin to see portfolio managers shift asset mix in this direction in a big way. Small U.S. based companies w/100% of sales derived from the U.S. Globalization, geographic diversification simply spell RISK--in all caps--foreign currency translation risk, geopolitical risk, revenue risk, margin risk, default risk. Just give me good ol' Billy-Bob or Billy-Ray spreading asphalt from 7:00 A.M. to 4:00 P.M. on the highways across the good ol' U.S.A.

  • Reply to

    40% of FY 2015 Sales to Europe

    by roboklerk 4 hours ago
    roboklerk roboklerk 3 hours ago Flag

    In hopes of merely delaying the seemingly inevitable, the company will have to move quickly to lower its breakeven point even further (i.e.,more head count reductions, salary freezes if not decreases, eliminating lower margin product lines), tap whatever remaining debt availability they can, and turn accounts receivable and inventory quicker than you can say "Bob's your uncle". They may need to consider alternative outside financing. The VW , Brexit, and strong U.S. Dollar problem is a multi-year overhang, but the impacts are probably going to be felt very quickly (e.g., watch the foreign booking numbers). China is dead. Latin America is dead.

    What you want to own are small U.S. companies w/near 100% of revenues derived from U.S. sources. At a minimum you want companies w/sales to Europe equal to zero, nada, bupkis (but frankly, Canada, Asia and Latin America are not much better). Why PRCP was not sold two years ago remains a mystery--- well, maybe not, considering the players involved. They seem determined to ride the gravy train all the way to Pottersvile. The institutional holders will just write it off. The small retail holder, the employee--he/she will get flayed alive.

  • roboklerk roboklerk 3 hours ago Flag

    I actually think Europe faces a very long period of stagflation. Growth will be de minimus, but the banks will be flooded w/liquidity to keep them from failing and import prices will surge w/the stronger U.S.dollar. I do not know how they avoid that trap. Got my eye on a nice little cottage in Scotland for visits in retirement , but will wait a while to consider pulling the least until dollar parity w/the pound...maybe a little longer.

  • You might want to own this at these levels w/the WilPhoneix going back to work. But it begs the question: when was the last time Greenspan was right about anything? And wasn't he the guy who got this whole mess started nearly a decade ago for which we still have to "pay the piper"? OK, that's two questions, sorry.

  • 40% of Backlog in Europe, 33% of Bookings from Europe. Rut Roh! Only question left: Who is going to deliver the eulogy? Wonder how many of the PMs holding this have done the due diligence on those numbers?

  • PRCP still faces: unresolved litigation, a long deteriorating Chinese economy, the multi-year overhanging VW mess and associated reduction in cap exp,, the U.S. Auto Cycle having peaked, Latin America diving lower still, Europe well below trend line growth at the macro level with or without Brexit and despite negative rates, and the U.S. below historic trend line as well. Japan has been in a decades long recession/depression. Still, if you hold the $1.5 million of debt mentioned in the last CC and it happens to be secured by company assets---those assets gotta be worth at least $10 million despite all the headwinds, lack of management infrastructure and lack of a coherent business plan as a standalone. That's a nice multiplier return if this company takes a digger, potentially much better than the return for equity holders. Of course you want to be first in line w/the debt as there is possibly more debt yet to come.

  • roboklerk roboklerk Jun 22, 2016 3:58 PM Flag

    The market is putting Enterprise Value (giving the company the benefit of its estimated net cash position) for PRCP at a little above $30 million. No one is stepping up to buy it. What is a company worth that cannot make a profit despite market leading technology and an historic Auto Upcycle? Someone could buy it and end up singing that old song from Porgy & Bess: "I got plenty o' nuttin". Great technology. Can't make money. Look at the track record.

  • roboklerk roboklerk Jun 22, 2016 11:50 AM Flag

    Who would want it? It couldn't make a profit even in the peak of the Auto cycle.

  • roboklerk roboklerk Jun 22, 2016 11:44 AM Flag

    Apparently no one wants the company

  • apparently at any price. hmmmm?

  • Walter Brown Pistor and the former CEO could all potentially lose their entire investment in the company due to "benign neglect". Everyone seems to be sitting on their hands doing their best impression of Alfred E. Neuman---"What Me Worry?" (for all you Mad Magazine mavens out there). Less than $2 per share left to lose, but even that amount is "phantom money" if they tried to exit in the public market. The stock could quickly trade far below that level. They could take this whole deal private for less than $10 million, but apparently no one has even that amount of cash available or could not borrow that much in a buyout. That kinda tells you we are dealing w/small time "players". The total company is worth less than a moderate priced home in the Hamptons. Average daily trading volume is a little over 1,000 shares per day, and yet they still absorb all the attendant costs of remaining public despite being an irrelevant entity to almost all investors. None of it makes sense, except to the insiders and management who still get paid year after year.

  • roboklerk roboklerk Jun 22, 2016 10:07 AM Flag

    For all practical purposes, one cannot exit any significant volume of stock in the public market. The stock is near worthless for the largest holders. Insiders are still being paid however. For insiders it's like an annuity as long as they remain debt-free w/ a small cash balance. Nice gig, getting paid for running in place.

  • Reply to

    Just Can't Hold Any Rally Attempt

    by roboklerk Jun 17, 2016 2:49 PM
    roboklerk roboklerk Jun 22, 2016 9:38 AM Flag

    Nothing is going to change until a new Board of Directors and CEO are placed. The stock will be marginalized at heavily depressed levels; it's tainted.

  • however minor.

  • anyone know? That is kind of a key piece of information missing from the release. Is the dayrate the same as the previously contracted dayrate or has it been re-negotiatied? In the absence of any disclosure one might assume the predetermined dayrate still holds--but you know what they say about assuming

  • of the company ASAP. Not sure to whom they may owe a fiduciary obligation, but institutional holders can clearly see SMIT has been treading water for at least a decade, serving as little more than a "gravy train of compensation" for the BOD and executive officers and delivering nothing to shareholders. This must end. In the meantime, they should exit both the China and Latin America markets which are probably dead for the next decade or two, and implement a significant headcount reduction, beginning at the highest levels. This is a company operating purely in default mode, without a cogent strategic plan in place . It is clear the public market will never give them anything other than a minimal valuation. They have ruined the public trust by their inability to achieve sustained profitability. Do a "Rip Van Winkle", wake up in 2025 and the stock will be likely still be roughly $2 per share. The markets they serve are moribund, global manufacturing continues a downward trend, the company is merely hanging on in zombie mode.

  • Reply to

    Another New 52-Week Low

    by roboklerk Jun 13, 2016 3:54 PM
    roboklerk roboklerk Jun 16, 2016 8:03 AM Flag

    Begs the question: "Then what are they waiting for"? Godot? The public market has voted. The company needs to be sold or taken private. That may be the only way to realize fair value at this point. The public market is not going to give it to them, not w/their checkered up and down history of quarterly results.

  • hmmmmm? Talk about dead money over an extended period of time.

  • Reply to

    Another New 52-Week Low

    by roboklerk Jun 13, 2016 3:54 PM
    roboklerk roboklerk Jun 15, 2016 8:23 AM Flag

    Feels like a trend, one that has been going on for a very long time. Even w/the CEO buying stock nearly daily, apparently no one is willing to follow him into the breach. That says a lot. The stock is "tainted", very few want to touch it.

4.4985-0.0615(-1.35%)Jun 27 3:48 PMEDT