FWIW, I added some in the last week or so. Likewise, I have been burned trying to call bottoms, but sometimes it has worked out.
There are a few other people that follow CODE also, but we are more interested in whether Spansion is still buying test equipment from AEHR Test. If Spansion does well, we are hoping they will buy more equipment from AEHR. Still, CODE stock is looking strong.
I noticed that SXCL (aka Steel Partner) added to their position in "Aviat Networks, Inc. (NASDAQ: AVNW), the leading expert in microwave networking solutions". They are now over 6%. This company sounds similar to ATNY, lots of revenues, but no profits. Still think Warren may be trying to put a larger company together. Not sure whether he will let the current investors make any money on the deal or not.
Keep in mind there are only 6.5M shares outstanding. Officers and directors as a group own 4.4% per the latest Def 14. Not that bad a number. I also think the Niner family (father of current BOD member) still owns another 3% or so of the shares. Not required to file anymore, so can't be sure.
From old SC 13 filing:
Richard T. Niner is the direct owner of 231,812 shares of common stock. The 231,812 shares represent approximately 3.6% of the 6,389,720 outstanding shares of common stock.
Just hope they don't get bought out. They have almost $8 per share in cash. Would rather have this as a good long term holding than get a quick small profit.
Not sure who the buyer would be. Steel Partners owns over 20%. Gabelli owns almost 20%. I suppose SP could use SXCL to buy SLI. SXCL has enough cash to pull it off. Not sure what the benefit would be to Warren though. Gabelli might like to close out his position with at least a double on his shares. Maybe Warren would like to put SLI, SXCL, and ATNY (others?) into a common company like Berkshire, the other Warren did. Talking my book a little, I now have a pretty good sized position in ATNY.
Seems like demand is pretty good for these ABTS systems. Now we need to deliver the Fox-1P. Should see Q1 in a couple weeks.
FREMONT, Calif., Sept. 2, 2014 (GLOBE NEWSWIRE) -- Aehr Test Systems (AEHR), a worldwide supplier of semiconductor test and burn-in equipment, today announced it has received a follow-on order for its Advanced Burn-in and Test System (ABTS) from a leading manufacturer of advanced logic integrated circuits (ICs) for automotive, embedded processing, digital signal processing and analog applications. The order includes down payments to lock in a delivery slot and volume pricing discount. This system shipped in the first quarter of Aehr Test's fiscal 2015.
The chart is looking a little better. Guess they have a show coming up also.
ORLANDO, Fla., Aug. 27, 2014 /PRNewswire/ -- API Technologies Corp. (ATNY), a leading edge provider of high performance RF/microwave, power, and security solutions for critical and high-reliability applications, announced today it will present a full range of electromagnetic spectrum solutions at the 51st Annual Association of Old Crows (AOC) International Symposium and Conference in Washington, D.C., October 6-9, 2014, at Booth #1009.
Just looked at the CODE chart. It has recovered much of the price drop following the last weak report. Hope they are buying AEHR equipment.
Jeff Scott asked the question during the CC. I also saw in the 10-K as well as a recent 8-K that the Line of Credit has been extended for another year. Looks like they have about $1.5 million still available.
9. LINE OF CREDIT:
On August 25, 2011, the Company entered into a working capital credit facility agreement allowing the Company to borrow up to $1.5 million based upon qualified accounts receivable, and export-related inventory. On May 29, 2012, the credit agreement was amended to increase the borrowing limit to $2.0 million. On September 11, 2012, the Company entered into the second amendment to the Loan and Security Agreement to increase the borrowing limit under the credit facility from $2.0 million to $2.5 million. On August 21, 2013, the Company entered into the Third Amendment to Loan and Security Agreement to extend the term of the agreement to August 22, 2014. Under the terms of the amendment to the line of credit, the lender will also have a security interest in the Company’s intellectual property. On August 22, 2014, the Company entered into the Fourth Amendment to Loan and Security Agreement to extend the term of the agreement to August 21, 2015.
I haven't given up yet. It took a while, but Warren made pretty good money on SL Industries (SLI). I added shares last week to kind of average down my cost for the $2.65 shares I bought earlier. I think I read that Warren's average cost was $2.43. Like to get to there also.
Maybe not that cheap. The exercise price for the options granted was $2.71. Better than the sub $1.00 options in the past. Let's hope those really turn out to be a bargain if the share price goes up. Big thing to me is that we get some clarity on the new system delivery dates at the next earnings report. Only about a month away now.
Latest 8K seemed positive to me. Excerpt:
July 2014 Orders Comments
Trailing three-month order trends improved consistent with previously communicated expectations, reflecting gradually recovering global business investment. Underlying orders grew 7 percent, excluding 1 percentage point from currency translation, with growth strongest in North America. All segments accelerated, led by robust growth in Process Management.
Process Management orders growth accelerated, led by favorable oil and gas market conditions in North America. Growth remained strong in Asia, as India and South Korea more than offset continued weakness in Australia, and demand improved in Europe, supported by strength in the North Sea region. Latin America was slow, as strong demand in Mexico contrasted with broad weakness elsewhere, and conditions remained unfavorable in Middle East/Africa. Currency translation added 3 percentage points.
Industrial Automation order trends reflected solid growth, as global demand for capital goods continued to recover slowly. Strength in power generating alternators, electrical distribution, and fluid automation offset slower market conditions for motors and drives, particularly in Europe. Currency translation added 1 percentage point.
Network Power orders grew moderately, reflecting robust demand in Asia and improvement in North America and Latin America. Strong growth continued in the telecommunications infrastructure business and data center markets improved broadly, except for Europe. Currency translation added 1 percentage point.
Climate Technologies orders growth reflected continued industry momentum, particularly in North America residential air conditioning markets that benefited from demand acceleration related to upcoming regulatory changes. Market conditions remained solid in Asia, with more modest growth in Europe. Growth moderated but continued in the refrigeration business, and sensors and controls demand remained soft.
Looks like the hopeful are already pulling it back up. I think even 24 or so might be OK, but not 29. Found it interesting that ag demand helped films and hurt applied technology this quarter. The recent weak forecast by Deer doesn't bode that well for AT either, not to mention record harvest predictions and low prices for grains. Not selling, but not willing to buy more yet.
Microsemi Corporation (MSCC), which is only marginally profitable, trades at about 2.5 times revenues. API trades at .5 times revenues. If they could just get this in the black, we could get a nice move up. Maybe that's what Warren Lichtenstein at Steel Partners is thinking also. The last few quarters haven't done much.
I saw the 13D filing, but thought the change was small enough not to matter. Gabelli is always selling and buying small amounts of their positions for cash management, etc. Still, someone really likes this company. Kicking myself again. Hoping I will develop callouses to lessen the pain.
I agree with the Pavlovian conditioning. So many quarters of good reports, it's hard to give up on them. Maybe they will turn the corner this quarter. My McGrath Rentcorp has also talked about tempering expansionary expenses and trying to improve the bottom line. Hasn't happened yet, but I remain somewhat hopeful for them also.