At least it shows they are starting to think something needs to be done. Many times though, their timing can be worse than mine. FWIW, I added a few more today at $6.10. Won't be the first time if I am wrong.
And finally, I just noticed that the comments (from Barron's) were by Thomas Diffley who used to follow AEHR.
Shares of chip equipment giant Applied Materials (AMAT) today closed down 94 cents, or 4%, at $22.29, despite a bullish note from D. A. Davidson’s Thomas Diffley, who raised his rating on the shares to Buy from Neutral, writing that “several waves of growth” are ahead for the company that are more important than the hand-wringing over Brexit.
Diffley raises his estimates for Applied for next year, to $11.25 billion in revenue and $1.85 per share in net income, from a prior $11 billion and $1.70, and he raised his price target to $28 from $24.
Brexit could ripple through the financial markets over the next few quarters and ultimately impact some end market demand for semiconductors, but we believe AMAT’s business will remain robust as a majority of its key drivers are technology transitions and not simply capacity additions. The move from planar to 3D NAND is expected to be the largest driver and AMAT has a strong portfolio of the key etch and deposition products that dominate this tool intensive transition that will likely last for several years. The organic light emitting diode (OLED) displays requires three times the number of AMAT tools than the older displays did and the company is developing new tools to further enhance its display SAM. The move to 10nm and 7nm technology requires the use of new materials and structures that also increases overall capital intensity.
It sure is under followed and I think also undervalued. $220M in revenues and $190M market cap with $50M in cash. Not sure what it will take to get someone's attention.
They must have read your post. It's listed on the AEHR website now:
July 12-16, 2016
San Francisco, CA
Only thing is, it sounds like the regular dividend is now $0.06 per Q, but could have been worse. Good news on both stories today. Now if they can just start turning a profit.....
Brookings, S.D. - June 17, 2016 - Daktronics, Inc. (NASDAQ - DAKT) announced today that its Board of Directors on June 16, 2016 approved a regular quarterly cash dividend of $0.06 per share and a special dividend of $0.04 per share.
"We are pleased to simultaneously return value to shareholders through regular quarterly dividends, special dividends, share repurchases and continued investment into business growth opportunities." said Reece Kurtenbach, Chairman, President and Chief Executive Officer. "This quarter, we changed to a regular and special dividend structure to allow for flexibility in cash allocations between our dividend program, the just-announced stock repurchase program, design and development investments, and other business opportunities."
The quarterly dividend and special cash dividends will be payable on July 8, 2016, to shareholders of record as of the close of business on June 27, 2016.
Although the Company intends to pay regular quarterly dividends for the foreseeable future, subsequent dividends will continue to be reviewed quarterly and declared by the Board at its discretion.
Hmmm. Maybe someone got their attention at the board meeting.
BROOKINGS, S.D. - June 17, 2016 - Daktronics, Inc. (NASDAQ - DAKT) announced today that its Board of Directors authorized a stock buyback program under which it may repurchase up to $40 million of its outstanding common stock.
“The stock repurchase authorization allows us to be opportunistic in acquiring stock to use for future investments. We have a strong balance sheet and generate free cash flow to support our share repurchase plans.” said Reece A. Kurtenbach, Chairman, President and Chief Executive Officer. "We are pleased to add the share buyback program to continue to return value to shareholders in conjunction with the regular quarterly dividends and continued investments into business opportunities."
Shares may be repurchased from time to time in open market purchases, private transactions or other transactions. The timing, volume and nature of share repurchases will be at the sole discretion of management and will be dependent on market conditions, applicable securities laws and other factors, and may be suspended or discontinued at any time. Under the stock repurchase program, Daktronics may repurchase shares in open-market purchases in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. No assurance can be given that any particular amount of common stock will be repurchased.
OK, Q2 wasn't great, but not that bad. I have to think the recent price drop is related to fears that Britain is leaving the Eurozone. Who knows what the long term impact on Hurco's European business will be, but the market doesn't like not knowing.
FWIW I posted it on the IV board also.
When I ran my undiscovered growth-stock screen, I was happy to see that Daktronics (DAKT) still makes the grade. The company makes electronic display systems, like electronic billboards and huge displays for professional athletic stadiums. It can be a lumpy business, as the huge scoreboards and stadium displays are wildly profitable but they are not replaced very often. Wall Street hates lumpy: It sold the earnings decline late last year and have continued to sell the shares into 2016.
Looking forward, this is a fantastic business. Digital signage for transportations systems, billboards and the sports market is going to be a growth market, and Daktronics is well positioned within the market. Growth rates should exceed the relatively low rates currently priced into the stock, and it has the potential to be a huge winner for patient investors. I own the stock and currently have a loss ,but I will be buying more and expect to sell this stock in four or five years for many times my cost basis.
hardly anyone has real conviction in their belief
key statement. Anyone who believed there was a decent chance of this working out would buy all the shares they could get for under $2.00. AEHR provided a small sign of hope with the last PR, it's still no sure thing. That order by itself is not enough to keep them in business or preserve their Nasdaq listing requirements. $1.5M per Q won't get the job done and as far as we know, that's all there is. It will be interesting to see it play out.
And, for what it's worth, I have a pretty good sized position (for me) at an average cost of $7.12. So, I am already in the hole, but that's nothing new.
Over the years, I have owned several companies that managed to make just enough money to pay the leaders a good salary, pay the help enough to keep them there, and just a little more to keep in the black. Nothing left to increase the value of the company for the share holders. Not all bad I guess, for the community, the employees, etc., but not great for the owners of the company (me). It's hard to know when a company is satisfied with that situation. They almost always pay lip service to increasing share holder value. Unless they are taking concrete actions to effect that, it's just talk. At this point, Daktronics isn't even paying lip service to increasing share holder value. I still think some major holders might step in and force them to look at "strategic options". About 8 million shares traded hands since the quarterly report, so there are some new holders that may have more energy than older holders. Or maybe I am just dreaming and will have to dump this at a loss. I will give it 3 to 6 months to see what happens.
I didn't expect them to restart paying a dividend this quickly. Shows confidence about the future profitability of the company.
Newport Beach, CA – June 13, 2016 – American Vanguard Corp. (NYSE:AVD) announced that its Board of Directors has declared a $0.01 cash dividend payment to be distributed on July 12, 2016 to shareholders of record as of June 30, 2016.
Eric Wintemute, Chairman and CEO of American Vanguard, stated, “This dividend payment extends our 27 year history of providing such returns to our shareholders. While business conditions in the Crop Protection Industry have been quite challenging for the past 2 years, American Vanguard has taken decisive management action to enhance operational efficiency and strengthen our balance sheet. We have also positioned the Company to expand internationally and are driving a significant Precision Agriculture initiative with our prescription planting SIMPAS equipment technology. This dividend payment reflects recent improvement in our financial performance and the long-term confidence that the Board of Directors has in our future prospects. We appreciate our investors’ support as we continue to deliver important solutions that enhance agricultural productivity and safeguard public health worldwide.”
FWIW, from IR:
Thank you for your interest in Daktronics, Our board has not met yet for the quarter. Any decisions made by them at that time will be announced to the public.
Either that or the major shareholders get Reece into a room and tell him to get costs in line with revenues or look for a new job.