Good signal I think. Those were due to expire on that date, and there wasn't much profit in them with the exercise price at $1.95. I won't blame them for selling a few after the earnings report comes out if it comes with some good news.
I guess if you don't have any other ideas....
Emerson (EMR) today announced it plans to spin off its Network Power business via a tax-free distribution to shareholders as part of a plan to streamline its portfolio, drive growth, and accelerate value creation for shareholders. Emerson will also explore strategic alternatives for its motors and drives, power generation and remaining storage businesses. In addition, the company will conduct a complete review and assessment of its corporate services and structure to bring them into alignment with its smaller scale and sharper focus.
I will chime in for what it's worth also. After listening to Farr for about 6 years, I find that he is very sure of himself whether he is right or not. He seems to be wrong on the major economic trends more than he is right. Seems the best thing he does is to be friendly with the analysts hoping to keep the buy ratings coming in. Still think it's a good company with an impressive list of products and brands. I have used many of their products over the years as an electrician, process control technician, and project manager in the construction part of the pharma business. Wouldn't hurt my feelings if they brought in a new guy at the top, but don't think it's very likely.
The list of exhibitors is now at 698. Maybe they just don't think it's worth the effort trying to make yourself stand out in that big of a show. It will be a busy week also with the earnings CC and the CEO summit.
From Barron's also on rebalance. AEHR didn't participate much in the rebalance rally for new stocks. Could explain our recent weakness late this week.
Traders tend to play these moves too, with some buying shares earlier in the year of companies likely to be added to the Russell 2000, and selling them just before the rebalancing. It can be a lucrative trade: The stocks being added to the Russell 2000 are up 11% since May 1, according to Colas.
I am assuming that what is good for Cypress/Spansion is still good for AEHR Test. Sounds like things are going well for them from this article. I posted the entire article at the Investor Village AEHR message board if anyone is interested.
That’s why the Spansion merger should work out well. Both companies make specialized chips and memory, but they sell primarily to different markets: Cypress to consumer electronics companies, and Spansion to automotive and industrial customers. That means their newly combined company will lose little revenue to overlap, while likely trimming manufacturing costs. More important, it can cut duplicated corporate departments and drive profits higher. Management says it can trim $135 million in yearly costs within three years and get the operating margin up to 20%.
Wall Street predicts Cypress will book revenue of $1.73 billion this year, more than double last year’s total, and $2.12 billion next year, the first full year of combined reporting. Forecasts for the following year give a sense of the potential for organic sales growth: about 6%. But operating profit could rise much faster. Last year it totaled $97 million (absent stock-based compensation). By 2017, Wall Street expects it to reach nearly $500 million.
Could help some with volume. Overall a bonus I think. Volume was up a little last 2 days, 45K and 25K. Short interest was still very low as of June 15 date. I added some today at $2.06. I wouldn't expect to see any announcement now until earnings. They usually keep something in their pocket for the earnings date.
Date SI Av Vol Days to cover
6/15/2015 11,273 7,379 1.527714
5/29/2015 16,288 9,527 1.709667
5/15/2015 32,105 42,694 1.000000
4/30/2015 14,107 38,608 1.000000
4/15/2015 8,573 26,643 1.000000
Yes. I tried to see if there were any clues in the announcement, but it seemed to be identical to past announcements except for the dates.
I noticed PRs from most of the same companies for this years 7th Annual CEO Summit, but haven't seen anything from AEHR yet. Saw PRs from Brooks, Cabot, Cohu, InTest, Intevac, and MKS Instruments. The Q4 earnings were announced on July 17th last year, so maybe that would be too much action for one week. Also, with earnings only a few weeks away, they might wait for the earnings PR to make any announcements on orders, etc. "Fire all of your guns at once, explode into space". Apologies to Steppenwolf.
The "Sizing Up Small Caps" column has a nice article on Raven this week. I posted the entire article at the IV message board, but here is an excerpt from the story.
IN THE PLASTIC-SHEETING business, oil-and-gas customers account for about 35% of sales. Raven also supplies sheeting and coverings to other industries, and to agricultural customers. That business, which has been strong, will help to offset the weakness on the oil-and-gas side, potentially leading to flat division revenue for the year.
Raven’s participation in Google’s Project Loon could be a big opportunity that isn’t getting adequate credit from investors. Dougherty’s James says there is a 70% chance that Google will proceed with the project, perhaps by next year, which could mean orders for tens of thousands of balloons. James estimates Project Loon could generate $50 million to $100 million in annual revenue for Raven, and be worth between $4 and $8 to the stock. Raven has no competition in its ballooning business.
Raven management is on the hunt for acquisitions, and has plenty of financial flexibility to make a deal. Maintaining the dividend is also a priority; the company has paid one for 42 consecutive years.
While Raven’s business is cyclical, the company shouldn’t be dismissed. When markets turn up, the company’s shares are apt to take flight.
One other consideration. As we were closing out FY2014, it was apparent that AEHR would be at least marginally profitable for FY2014. This year will be another story. We will lose about $0.50 per share on the year and revenues will be down substantially also. Granted it looks better going forward with recent orders, but we still need new systems delivered if we are going to see the major gains we hope for. I suppose AEHR could be profitable just with old tech sales, but that's not what we want. We need a really good story or some big orders with the year end report.
Not so sure about that MUWarrior. The recent S-3 filing and related EFFECT filing imply that 1.4M shares for QVT have been registered. From the 13G for QVT:
The percentage (9.99%) disclosed in Item 11 of the Cover Pages for each reporting person is calculated on the basis of (i) 12,709,054 shares of Common Stock outstanding, which was the total number of shares issued and outstanding reported in the Issuer’s Quarterly Report on Form 10-Q, for the quarterly period ended February 28, 2015, filed with the Securities and Exchange Commission on April 14, 2015 and (ii) 1,410,548 shares of Common Stock underlying the Issuer’s convertible notes, pursuant to Rule 13d-3(d)(1)(i).
I thought this was in NY in previous years, but could be mistaken. At any rate, this year's is in San Fran, so they could attend both I guess.
Seventh Annual CEO Investor Summit 2015 on Wednesday, July 15, 2015 in San Francisco, California.
About The 7th Annual CEO Summit
The CEO Summit is an accredited investor and publishing research analyst event that is held concurrently with SEMICON West and Intersolar 2015 in San Francisco. The event is hosted by executive management from participating companies and will feature a "round-robin" format consisting of small group meetings, each 30 minutes in duration.
Guess we could all bid it up on Friday. Using 12,709,054 shares from the Q3 report (without the QVT stake), the $30M share price needed is a little over $2.36 per share. If you add in the QVT shares, we are well over it now. 5,000 or 10,000 shares at the market would probably push it through. Of course, another order might do the job also.
I would guess that without a 3rd party coming in to make an offer for SLI, current un affiliated share holders will be at the mercy of Warren and his minions. And the other sad part is, Warren is really the only one who knows what the value of the company is. He is unlikely to want to share knowledge with anyone else as long as he thinks he can get the deal done at his price.
Seems like the ambulance lawyers would be all over this if SLI doesn't shop the company around. Wonder if Gabelli would accept this offer.
Handy & Harman Ltd. (“H&H”), a publicly-traded NASDAQ company and an affiliate of Steel Partners Holdings L.P. (“Steel”), hereby formally proposes to acquire all the outstanding shares of common stock of SL Industries, Inc. (“SLI” or the “Company”), through an appropriate acquisition entity, for a price of $43.00 to $45.00 per share (subject to limited confirmatory due diligence) (the “Transaction”). Our proposed purchase price represents a significant premium to the recent trading prices of the SLI shares. Our proposal contemplates that SLI stockholders other than Steel would be able to elect to receive cash or stock of H&H (with Steel electing to receive all stock), subject to proration so that the aggregate consideration consists of 55% cash and 45% H&H stock. Based on Steel’s status as a significant stockholder of the Company for over 20 years with representatives on its Board and a well-founded appreciation of its business and operations, we firmly believe the Transaction is in the best interests of SLI’s stockholders.
The proposed Transaction would enable stockholders to both (1) realize immediate and certain value through the cash portion of the consideration and (2) receive a far more liquid security that would also allow stockholders to participate in the upside of a larger and financially stronger company. In addition to providing the stockholders of the Company with full and fair value for their equity, we believe the Transaction would far better position SLI for future growth and success as part of the H&H family of companies, produce significant cost savings and generate tangible synergies with H&H’s existing businesses.
We propose that the Transaction be accomplished through a negotiated merger agreement with a customary fiduciary out but without a “go shop” given the Company’s knowledge of the market and the fact that the Transaction provides for SLI’s stockholders to have a continuing interest in the combined company rather