Just went back and looked at the Barron's article from Nov. 8, 2014. Excerpt:
Weak European markets have led investors to bail on shares of OM Group. The maker of industrial-use magnets, batteries, and specialty chemicals, which caters to the automotive, aerospace, and medical-device industries, draws more than half its revenue from Europe.
OM’s stock (ticker: OMG) has plunged nearly 30% this year. While we’re not calling for a rebound in Europe, at $26.60, the shares look compelling, and could have a lot of upside.
Profitability may benefit from cost-cutting. More importantly, with about $3.50 a share in net cash on the balance sheet, and an expected free cash flow yield of 10%, much depends on how management allocates its capital.
Management has been returning cash through dividends and stock buybacks, but the level may be too conservative for some investors. The situation could attract an activist.
The shares are cheap, trading for an enterprise value of six times estimated 2015 earnings before interest, taxes, depreciation, and amortization (Ebitda). Chris Kapsch, who covers OM Group for Topeka Capital Markets, puts fair value 25% higher at $33, based on 7.5 to 8 times estimated Ebitda.
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.
OK, read the PR and listened to the CC. Not great for sure. 2 of 3 divisions had weak results. Still, seems like today's price action is over done. I added some at $24.25 today.
Dennis doesn't seem to know when the various divisions are going to be weak, or doesn't share the info with us. Still, maybe he doesn't know when it will pick up either. Hard to imagine Adler improving any time soon, but TRS could pick up fairly quickly. They are still covering the dividend and seem to want to keep their streak of increases alive.
I looked at this a few months ago when Barron's had a favorable article. Didn't look cheap enough at the time, but I guess someone thought it was.
CLEVELAND, NEW YORK and WEST PALM BEACH, Fla., June 1, 2015 /PRNewswire/ -- OM Group, Inc. (OMG), a technology-driven diversified industrial company, today announced that it has entered into a definitive agreement to be acquired by funds managed by affiliates of Apollo Global Management, LLC (APO) (together with its consolidated subsidiaries, "Apollo", and such funds, collectively, the "Apollo Funds"), for $34.00 per share in cash. The purchase price represents a premium of approximately 28% over OM Group's closing share price on May 29, 2015.
About as expected. Decent revenues, but as usual, no improvement on the earnings. Backlog was positive. Dividend is nice, but I don't see much prospect for improved share price until they can increase profits. It's selling at about a 20x PE which is fairly high for no growth. No disaster, but not a compelling investment except for the dividend. Will they continue to pay out 90% of reported earnings as dividends?
German chemicals group BASF SE (BASFn.DE) is considering a potential offer for Syngenta AG (SYNN.VX), the Swiss peer that has received a $45 billion takeover offer from Monsanto Co (MON.N), people familiar with the matter said on Wednesday.
BASF is speaking to investment bankers about the possibility of an offer for Syngenta, through it has made no decision and no bid may materialize, the people said, asking not to be identified because the deliberations are confidential.
Syngenta has so far spurned Monsanto's overtures citing antitrust hurdles, though lawyers representing the two companies met last week in New York to discuss whether the regulatory obstacles can be overcome, a separate source said. A BASF bid for Syngenta would also likely face significant antitrust issues.
The funds have until Aug. 15 to file their 13F reports for Q2 which ended on June 30. They have 45 days after the end of the quarter.
Maybe I am not quite as negative. With sales down 28% to still show a profit is not bad, assuming they haven't sold all the inventory to make the numbers. Another somewhat positive point is that if they buy back the rest of the Integra shares at under $20 per share, they wind up getting a 20% plus discount on the deal. Better than all cash I guess, though at the expense of the rest of us shareholders. My big concern is the macro picture for the economy. If we are really losing what little strength we had, it won't be pretty with rates still at 0%. I don't see the country's leadership being able to promote some kind or infrastructure program to get things moving. No one agrees on anything.
Sioux Falls, SD (June 1, 2015) — Raven Industries (NASDAQ: RAVN) has been awarded a firm-fixed price (FFP) contract through the Naval Air Warfare Center Aircraft Division Lakehurst, N.J. for the procurement of Exportable Persistent Ground Surveillance Systems (EPGSS), spare equipment and technical support. The tethered aerostat contract was awarded for approximately $6 million and is expected to be delivered over the next 12 months.
“Raven Aerostar is proud to support past and present efforts protecting and defending U.S. and Coalition forces. Whether it’s with our tethered aerostat systems, Vista Radars or stratospheric balloons, we have the unique ability to deliver affordable persistent solutions at any altitude,” explains Lon Stroschein, Raven Aerostar Vice President and General Manager.
NASA is attempting to launch a Raven Aerostar high altitude balloon this week in Hawaii. The 34 million cubic feet balloon will carry an 8,000 pound device—being tested for future flights to Mars—to the edge of space.
Looks like Yahoo deleted part of my post, so here goes again.
Selected stocks will be placed into one of three “test groups” or a “control group.” Stocks in the control group will trade normally and can be quoted and traded at any currently permitted price increment. Each of the three test groups will consist of 400 securities, with each group having increasingly restrictive rules, as follows.
Test Group 1: Mandates quotations in five-cent increments (e.g., a bid price of $4.25 and an ask price of $4.30). Stocks in this group can trade at any price increment that is currently permitted.
Test Group 2: Stocks will trade at five-cent minimum increments, but can also trade at the midpoint of the bid and ask spread, be offered to individual investors at a price that is at least more than $0.005 better than the current best bid and ask price, or can trade at increments of less than a nickel if a negotiated trade is made.
Test Group 3: Stocks must trade at the quoted price with the exception of specific circumstances—including a $0.005 improvement for individual investors.
Lots of coverage on TV, but no mention of Raven.
NASA's #LDSD balloon launch from Hawaii is go for today! You can watch live on NASA TV beginning around 7 a.m. HST (12 noon, Central Time).
The Feb. order was $2M for an ABTS-?, parts and support, so you might think the machine was $500K to $1M as a guess. Maybe closer to $1M, but who knows where the ABTS-P fits on the scale and the Feb. order didn't specify which model.
Fremont, CA (February 23, 2015) - Aehr Test Systems (NASDAQ: AEHR), a
worldwide supplier of semiconductor test and burn-in equipment, announced
today that it has received follow-on production orders totaling over $2 million for
an ABTS test and burn-in system and a package of support services and spares
I haven't seen a PR yet, but there is a 13D/A with this statement below and the share price is up $5 per market.
Purpose of Transaction.
Item 4 is hereby amended to add the following:
On June 16, 2015, Handy & Harman Ltd. (“H&H”), a publicly-traded NASDAQ company and an affiliate of Steel Holdings, delivered a letter to the Issuer formally proposing to acquire all the outstanding Shares of the Issuer, through an appropriate acquisition entity, for a price of $43.00 to $45.00 per Share (subject to limited confirmatory due diligence). The proposed purchase price represents a significant premium to the recent trading prices of the Shares of the Issuer. The proposal contemplates that the Issuer’s stockholders other than SPHG Holdings would be able to elect to receive cash or stock of H&H (with SPHG Holdings electing to receive all stock), subject to proration so that the aggregate consideration consists of 55% cash and 45% H&H stock. The proposal is conditioned upon execution of a definitive merger agreement and other customary conditions for a transaction of this type and size, including obtaining any material consents. The proposal is not subject to obtaining financing. The foregoing description of H&H’s proposal letter does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the letter, which is attached as Exhibit 99.1 hereto and incorporated herein by reference.
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.
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.
Sounds like Cypress is trying to consolidate some markets to be able to increase margins. I don't know if that will be good for AEHR or not.
In the latest round of a bidding war for chip maker Integrated Silicon Solution Inc., Cypress Semiconductor Corp. said late Friday that it is offering $20.25 a share in cash.
In March, ISSI announced a deal worth $19.25 a share, or about $640 million overall, with Chinese investors including Summitview Capital. After an unsolicited approach from Cypress worth $19.75 a share, ISSI said earlier Friday that the Summitview group would pay $20 a share.
Cypress, which previously complained that it was excluded from ISSI’s sale process, said Friday that “we must express frustration as to the slow pace at which we were given access to the data room as well as the slow pace at which documents were posted.”
Cypress and fellow Silicon Valley company Spansion Inc. closed a stock-swap merger valued at about $5 billion in March, keeping the Cypress name. The company’s technology is used in car-braking systems, hand-held medical devices and storing software in cellphones.
ISSI makes integrated circuits for auto, communications, industrial and digital consumer markets and operates in the U.S., Europe and across Asia.
Found this on Seeking Alpha, but not on Raven website, so can't vouch for the accuracy.
Jun 1 2015, 08:35 ET | About: Raven Industries, Inc. (RAVN) | By: Yoel Minkoff, SA News Editor
Raven Industries (NASDAQ:RAVN) has been awarded a firm-fixed price contract through the Naval Air Warfare Center Aircraft Division for the procurement of Exportable Persistent Ground Surveillance Systems and other equipment.
The $6M tethered aerostat contract is expected to be delivered over the next 12 months.