Another pretty good report. Seems like the results are adequate to justify the 20x PE ratio. Regarding the Alco purchase: Alco makes quality products. We used many of them for instrumentation and process control projects before I retired. Now they have another $500 million to figure out how to put to work. I guess if nothing else comes up, they can pay a special dividend or buy back shares.
"Growth in all regions and reportable segments led to Graco's thirteenth consecutive quarter of achieving record quarterly sales,"
Found a couple more Morningstar comments on Raven:
Todd Wenning is a stock analyst for Morningstar.
As of Oct. 17, here are my top five watchlist candidates (in no particular order):
•Winmark: More research is needed on the threat of online competition and potential changes to franchisor liability.
•Raven Industries: The current price looks attractive, but the biggest risk is that we're only now entering a long downcycle in farm-equipment demand.
•Latchways: Despite new concerns, the stock price has fallen enough to make it worthy of further research.
•Sun Hydraulics: I think this is one of the best-run companies in America. Buy it for a good price and then be patient.
•US Ecology: In the event of a broader market pullback, it's hard not to like this wide-moat small cap as a long-term investment.
Raven Industries (RAVN) - With the stock down 40% year to date, it's safe to say Raven's had a tough year. Contributing to the market's sour mood toward the stock are lower corn, soybean, and wheat prices, which will likely mean lower farmer incomes and reduced spending on precision agriculture equipment. While the market's short-term concerns are legitimate, I think this could simply be a bad year or two, and the company is still well positioned for longer-term success. With limited arable land across the globe and growing emerging-market food demand, I expect that crop yields will need to increase in the longer term, which should provide a steady tailwind for Raven's precision agriculture equipment.
I would love to see them do it with a bank line of credit. Money is pretty cheap right now. But a small dilution (10%?) that came with firm orders would be acceptable also. Thanks for posting.
Director Patel had some options that were due to expire this month. He exercised them (5,000 shares at $1.42) and so far hasn't sold them. In the past, he was a serial seller. Looks like 4 more directors also have 5,000 that need to be exercised by 10/27 with the same $1.42 conversion price. Hopefully they will also hold the shares after exercising.
Thanks for posting that. It may be the only way to get partially bailed out from this company if they can find a greater fool.
Well, you got your single digits. I would like to call this a bottom, but have been burned too many times. It will be interesting to see how the share price does going into earnings in two weeks. Can't wait to hear what they say at the CC.
They could sell shares I suppose, but it would be nice if they waited until they had some firm orders to shore up the share price. A secondary based on needing to fill orders could be quite positive. They also talked about increasing their debt load during the conference call, so I guess we just have to wait and see. If their bank feels the orders are really solid, it might be willing to increase their line of credit.
On another note, it seemed like the Intel report was decent. Maybe we will get a little recovery in tech stocks tomorrow.
Lots of things getting hit right now. I don't own it, but follow Spansion (CODE) and it does embedded semi conductor products. Stock has gone from 23 to 16 in a week or so. Hoping Intel gives a good report and forecast tomorrow. The other Steel Partners stocks seem to be holding up OK. Well, my ATNY maybe not so good, but AVNW and SXCL not too bad.
CODE was down another dollar today. Not really a good sign. I added more shares in AEHR today. Picked up another 5,000 at $1.89. Will be either really happy or looking for a window in a tall building. Just hope the share price doesn't collapse before we have a chance for a good press release on orders. If they drop it back to a dollar, even a double wouldn't make me all that happy.
Not sure I would expect the insiders to step in right now. It might look bad if they did and orders were announced soon after (we hope). I may be wrong, but I also think there is a limited time where insiders can buy shares. Not too soon after the last earnings report and not too close to the next one either. What I really hope is that they are able to finalize some orders. That will fix just about everything. I have several other micro caps that have dropped as much or more in the last month also.
A quick look at the Form 4s makes me think SP doesn't want to pay more than $1.80 per share right now. Could have been copycat traders that drove it up to $1.90. Who knows, just thinking.
Ha. Just because the price is going lower as you predicted doesn't make me happy. Still, I did buy a little this week at $22.78. I can add that to my list of mistakes on other stocks as well. Really bad week for small caps especially.
Yes, I actually thought about riding their coattails and buying some calls also. Glad I didn't do it. Maybe a good report and forecast from Intel next week will turn it around.
Speaking of destroyed, CODE is down 11% as I write this. Based on the MCHP forecast I guess. Hope Intel give a better forecast at their earnings call next week (Tue?).
Good luck (to both of us really). I added another 3,000 today at $2.03, but I am just about out of bullets. Looked like someone sold 1,000 near the close and took it down another 5 or 10 cents. On a day where the market tanked like this, not many people will be interested in picking up a thinly traded micro cap. Let's just hope there is a pleasant surprise order at the annual meeting. My order sat there for a couple hours before they finally sold the shares to me.
Who knows where we go if the market continues to tank.
Ha. It just popped up when I did a Google web search for Hurco. I wasn't able to find it when I looked at the Hurco regular website, so maybe they just provide the link to their regular customers.
OK, I have kind of followed Dawson for a few years, but never owned it. Message board here doesn't look too active, but does anyone have an opinion about the merger? Neither one of these companies seems to have been able to make much money on their own. Will this combination help that? Have they been competitors that were beating each other up on project pricing? Sorry try to get DD without much work, but if anyone feels like responding with a quick summary, I would appreciate it. Thanks, Steve