Yeah I would not be surprised to see FONR acquired. But it won't be for $700M. Current market cap is only $64M. An acquirer may be able to get it for $100M, and they would be absolutely stealing it!
Was just about to post the same. Oh and the broader market is soaring today! Yet someone is giving away their EVOL in the $8's. I don't get it.
Nice post! And I'm with ya. This stinky broader market not helping, but PESI seems crazy cheap. Interesting that your post got 10 thumbs down? What? Anyone care to share the bear case? Maybe it was just one person. I can't imagine that many people would give a thumbs down. Even if they didn't agree, you clearly laid out the reasons you think the stock is undervalued and why you're buying. Yahoo needs more posts like this. Instead of mindless pumping like PESI going to $10!!!! Get in NOW!!!
Yep totally agree! Will gladly keep buying a growing, profitable software company on Nasdaq that pays out a hefty 5% dividend yield.
30 seems like a stretch, but with some 3D hype...who knows. Anyone see this comment from today's investor presentation?? From Slide 16:
We will be delivering more new products in the next nine
months than at any time in our history – with a strong focus on
the 3D Scanning Solutions market.
Thanks but I don't know if there's a big rush to buy RCMT here. I figure fair value is around $7 (which would have been $9 before the dividend). I think there are much cheaper stocks out there with more exciting upside potential like FONR and PESI. Oil stocks will bounce hard at some point, but from where? I've tried to time the bottom on some energy names, with little luck.
Was only for a second. But bid was over $7 for awhile. I know because I was selling. Think it's fairly valued there.
Well I tried to tell ya guys! High of $7.33 this morning. And that's AFTER the $2/share dividend was paid. So an adjusted $9.33. Stock was around $8.10 when I made my post. Easy 15% gain in 2 weeks!
Huh? If they're paying a $2 dividend, the stock will drop $2 to reflect the $2/share dividend just paid out. I thought everyone knew this, but I guess not. I've seen total junk companies pay out a large dividend and zoom up to the dividend date. My point is that RCMT will actually be an undervalued company at $6.15 after the dividend is paid out. And it will rise back up after the next earnings report, if not sooner.
Why not own both? I think both stocks are attractive. DAIO prob does have more upside. But with the CEO buying on BSQR, I feel like downside is more limited on that one.
Of course. My point is when you look at the fundamentals of this company, it's worth $8 AFTER the dividend is paid out. So yes stock will drop $2 on dividend day to $6.15. But then it should appreciate back up to $8-$10 as earnings growth continues. That's why it's such a bargain here before the dividend payout imo.
You get a special $2/share dividend at the end of the month. And the underlying company has great fundamentals. Look at the last earnings report. Q3 earnings of .15/share vs. .09/share on a 12% revenue increase and a 57% increase in operating income. Outlook sounded very upbeat. The fact they're paying out such a large dividend only enforces their bullish expectations for Q4 and beyond. I think the underlying company is worth at least $8/share. So you're basically getting a $2/share for free if you buy before end of month. Don't find many deals like this!
That's why the stock price makes no sense to me. Just last week we have the CEO saying the company would be ROBUST with oil at $50!!! A few days later and the stock is priced for bankruptcy. Robust vs. bankruptcy. Pretty sure those are on opposite ends of the spectrum. If the CEO is right, the stock price will be a multi-bagger from here.
Maybe all this panic selling across the sector is creating some once-in-a-lifetime buying opportunities. Everyone is so incredibly bearish on oil right now. How low is it going? $55? $50? $45? When everyone is negative, talking about oil still going much lower and many companies going out of business...that's what you hear at the bottom. The daily fluctuations of the entire stock market are now following the price of oil. Something you also see at a bottom imo.
What I don't get is that it doesn't matter what price oil touches on a spike down. What matters is where it STAYS. People are afraid that oil is going to the $40's and it'll be there for years? That's what MPO's stock price is telling us at least. I certainly don't think that'll be the case.
Lots of analysts point back to 2008-2009 and how low oil prices went. Please pull up the chart. We had one of the worse global economic collapses in recent history. And oil was below $70 for a total of about 6 months. That's it. The US economy is obviously doing way better now, if not booming. Next few weeks/months will be interesting. Hoping sanity returns soon!