Imagine if those same directors realized that buying back stock could immediately put money in their pockets and the rest of the stockholders? They insist on taking the hard road, not the smart road.
With Convergent it is still up to BTN to execute. If everyone thinks the stock trades and is valued much higher than $4.70, then the company should be snatching up it's own shares. Even if down the road they would do a secondary for the same number of purchased shares at double today's price they would come out ahead.
Mgmt...think, think, think!!
Sentiment: Strong Buy
Well, you got me there...if BTN can squeeze more ITDA out of the EBITDA than it disclosed then the future should be rosy...
Convergent Media Systems has annual revenue of approximately $40 million and has averaged $0.7 million in EBITDA over the past three years (2010-2012). The acquisition is an all-cash transaction valued at approximately $16 million. Ballantyne Strong expects the transaction to be $0.06 - $0.10 accretive to earnings per share in 2014 and $0.15 - $0.20 accretive to earnings per share in 2015. In addition, Ballantyne believes there are opportunities to improve working capital management that should result in higher cash flow generated from Convergent’s operations.
Got to see how the stock closes today before I add any new money....most, but not all stocks tend to rebound during the day with a clawback off lows after a dump we saw this morning but a good % wind up finishing at their lows....right now it looks like just traders...a week down the road we may know otherwise.
Their selling and administrative expenses almost doubled...largely because of the decline in revenue but it exposes that they have not cutback the headcount...consultants not included.....have to laugh when you say "massive new growth".
I guess a buyback of shares is still out of the questions???
I think some headcount reductions are in order to compensate for the reduced sales going forward (vs previous yr).....
But you have to remember that the company itself helps guide the analyst toward his numbers. Some analyst read more into the companies guidance because they think they are smarter than management. Sometime management needs to keep it's mouth shut and stop proclaiming to the world how much they think they stock should be worth and just execute their plans. The stock price will take care of itself if the company executes. Porter saying the stock is worth $7.50/share just opens him up to criticism until the price reaches that target. Porter was certainly implying that he thought it was worth that price RIGHT NOW, not a year down the road. Guess he was wrong and the market never did believe him.
SECTION 2 - FINANCIAL INFORMATION
Item 2.02. Results of Operations and Financial Condition.
Third Quarter 2013 Financial and Operating Data (Preliminary)
On October 28, 2013, Gastar USA disclosed certain ranges of preliminary financial data and estimated production for the three months ended September 30, 2013.
Financial Results. Based on the most current information available to us, for the three months ended September 30, 2013, we expect to report the following items in Gastar USA’s consolidated statement of operations within the indicated ranges:
$17.8 to $19.8 million
Income from operations:
$1.0 to $2.0 million
Each of the foregoing includes the impact of an unrealized hedge loss for such period in the range of $4.5 to $5.5 million resulting from mark-to-market accounting. We also estimate that Gastar USA’s consolidated capital expenditures for the three months ended September 30, 2013, excluding acquisitions, were in the range of $22.0 to $24.0 million. We project our capital expenditures for fourth quarter 2013, excluding acquisitions, to be in the range of $30.0 to $34.0 million.
Our normal closing and financial reporting processes with respect to the foregoing preliminary financial data for the three months ended September 30, 2013 have not been fully completed. As a result, our actual financial results could be different from these preliminary financial data, and any differences could be material. Our independent registered public accounting firm has not completed its review procedures with respect to our unaudited financial statements from which such data may be derived, nor have they expressed any opinion or provided any other form of assurance on the data. The foregoing is not intended to be a comprehensive statement of our unaudited financial results for this period. The results of operations for an interim period, including the preliminary financial data provided above, may not give a true indicatio
Here the rest of the info...
Consolidated capital expenditures for the period ending 9/30 is $22.0 - $24.0 million, excluding acquisitions.
Capital expenditures for the 4th Q are estimated to be $30.0 - $34.0 million , excluding acquisitions.
Tried to post the link..but Yahoo won't let me. Go to Edgar ..........in connection with the public offering of the Series B preferred Gastar released some preliminary number for the period ending 9/30.
It ain't looking like they will meet analysts numbers...
Revenue: 17.8 -19.8 million
Income from operations: 1.0 - 2.0 million
Includes unrealized hedge loss of 4.5 - 5.5 million from mark to market accounting.
Avg daily product was 59.3 MMcfe which included 9.3 MMcfe of East texas properties that were sold on 10/2.
However in their comments management stated that phased in demand will now be spread out over the next three quarters which is a push back from comments made during the earnings call in early September in which they said the "next two quarters" . So apparently some orders have ben delayed either by customers or by the amount of time it will take to get the new molds made.
Also high volume, low cost products probably also mean low margin products.
So after the acquisition we still have almost $30 million in cash on the Balance Sheet. Let's just assume they need another $5 mil for additional working capital....they probably don't but I'll give them the benefit of the doubt. They still would have about $25 mil left in the bank..just sitting there....buyback is probably off the table for good since acquisition will boost share price.....a least there is some news we can chew on for the next few months.