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!
Seems like good news to me. No surprise at all that they didn't want to do the deal after crude prices collapsed. So MPO gets the assets back (which will produce $15-$17M in Ebita even at these low prices). Plus MPO gets to keep the $5M deposit.
Think he actually used the word "Robust" to describe how the company would be doing with oil at $70, $60, and $50. MPO is posting big profits and will continue to do so. Management is super upbeat and confident. Yet the stock price says they're going bankrupt. These are the kind of severely underpriced situations that investors dream of! Buying opportunities like this don't come along very often imho.
Any read thru the presentation yet? Check slide 25. The issue isn't whether the company survives. It's how much profit will the company make next year. And the answer is a LOT even at these low oil prices. At least $450M in adjusted Ebita next year! And oil won't stay down in the $60's for long. Current market cap is absurd for MPO.
I loved MNDO in the $2's. It was such a screaming bargain. I think it's fairly valued and then some in the low $4's. I sold too soon. Up almost 40% since last week...all because of the Louis Navellier recommendation. Momo traders may take it higher, but I certainly wouldn't buy it here.
Good buying opportunity this morning. Apparently that fired employee who sued the company is back in the news. The fact that he wants his job back kind of says it all. Was discussed in RFIL 10K and 10Q filings last year.
Note 13 - Legal proceedings
On May 24, 2013, a former employee of the Company filed a complaint with the San Diego, California office of the U.S. Department of Labor-OSHA alleging retaliatory employment practices in violation of the whistleblower provisions of the Sarbanes-Oxley Act. The complaint alleges that the former employee was terminated in November 2012 in retaliation for making disclosures relating to fraudulent accounting practices and lack of compliance with U.S. GAAP; violations of multiple Securities and Exchange Commission rules and regulations; and fraud against the shareholders. The complaint does not seek any specified amount of damages, but does seek various forms of relief, including the following: Reinstatement of the former employee’s employment, or in the alternative, an award for lost future wages, benefits and pension; back pay and bonuses; compensatory monetary damages in an amount to be determined; reasonable attorney’s fees; and all costs of litigation. The Company disputes the retaliation claim and has notified its employment practices liability insurance carrier of the demand.
Exactly right sandart! Dude obviously has an agenda. I look at dozens of stocks every day that I don't like. Do I hang out on their message boards? Of course not. What a waste of time that would be! I'd rather spend the time researching a stock I might actually buy.
Maybe coalporter has nothing better to do. Very sad if so. I noticed he even gave a thumbs down to all of my posts yesterday. Cute. He obviously thinks posting on a Yahoo message board has a great influence on the stock price. So maybe he's very new to investing. That would explain why try as I might, he couldn't name a single stock cheaper than FONR.
Another .07! Thought they might reduce it with the acquisition. Glad they didn't. Surprised more buyers aren't jumping on this. Profitable Nasdaq tech company paying out a fat 6.3% dividend yield. There can't be many more like this?
Have a few thousand shares. Maybe it'll slide to the $10's, where I'll add a few thousand more. Broader markets are on fire right now, so FONR could also pop up 10%+ on the next positive PR.
Ha sure you could! Of course I would like to see better top line growth from FONR. But the stock would be in the $20's or $30's if it was posting quarterly earnings of .38/share AND growing 20% per year. This is what you call a VALUE stock. I'm guessing it's $15+ again in the coming months.
Care to list a few of the 'plenty'?
And FONR won't be paying taxes for many, many years. NOLs as of last 10K were $137M!
How many Nasdaq stocks trading in the $11's just posted quarterly earnings of .38/share? Not to mention a solid balance sheet with nearly $2/share in cash. If anyone knows of other cheap stocks like FONR that are putting up big earnings that have yet to be appreciated by the market...please post them!
catjorny crying today after ELMD zoomed up 18%. What an idiot. He's probably short. Keep waiting for those sub-$1 prices!
Surprised SEV isn't getting more of a lift on this exciting development...
SOUTHBOROUGH, Mass., Nov. 12, 2014 (GLOBE NEWSWIRE) -- Sevcon, Inc. (SEV) reported that its Chinese JV, Sevcon (Hubei) New Energy Technology Company, entered into an agreement with a large Chinese manufacturer to design and supply controls for their range of motors used in passenger cars in China.
The contract, worth $2.2M in the first year, will utilize a variant of Sevcon Gen4 products being specifically designed for this application. Sevcon expects prototypes to be available in January 2015 and the start of production in the fourth quarter of this fiscal year.
"This is a good first step in China and we are very pleased with the progress being made there. We are working with a manufacturer who today supplies motors to a number of on-road vehicle manufacturers," said President and CEO Matt Boyle. "It is testament to the management of the JV that this project was secured less than six months after the JV started trading in China."
Everything looks great but the stock price. Markets rocketing to new highs...while CTEI continues its slow bleed. Who would sell this stock in the .60's? Could very well be in the $1's by next summer. Maybe the $2's. Just getting started here. Tons of upside, limited downside. So why sell now so cheap?