that is the big story here. i advised the timid to load up after the last report based on the optimistic statement by ceo ben. if you didn't buy then, now you have to pay 2 bucks more. still cheap at 7.95. we finally see 10 again in 2014 after 5 long years of pain
On Nov 19 Swenson sold his entire position of over 400,000 shares to Nancy Peterson at $3.92. She owns over 50% of the stock now. 1,754,464 shares. The first step to taking the company private?
there seems to be a sense of entitlement on the part of the CEO and CFO with the bonus payouts while earnings per share is going in the wrong direction and the energy business is being farmed to cheaper places. it is hard to defend what is going on if you look at it objectively. every year it's more start up costs. lets finally stop the expansion and bring home some profits already
seems about right considering the loss of energy business and start up costs. guidance was light on specifics as usual. for those that thought Benji would be more forthcoming than Pudil you were sorely mistaken. he is playing it close to the vest. you will have to put your faith in management to execute the long term plan. i have a small position just in case it takes off someday. i wouldn't want to miss the ride with all my old friends on this board.
Any of you C.F.A. types understand how their Selling expenses could drop 24% from 909 to 689??? Sounds too good to be true. They would have had a loss for the Q if they hadn't slashed expenses so much. Jeff???
i did know when earnings would be released and was ready at my computer to SELL if there was a hint of disappointment. i had an advantage, i was ready and i sold. my beef is the cryptic message from Ben about the energy biz softening with no statement how that really affects earnings the rest of the year. if he was going to make such a cryptic statement maybe he should have said nothing about it because all he did was create more disappointment and suspicion about the future. i lost faith in Ben that he would be an improvement over Pudil. it's just the same old WSI as far i am concerned.
i agree 100% with this. the new CEO Ben has no excuse for what transpired on earnings day. i like most long term holders had hoped their would be more transparency and communication with shareholders. i voted with my feet during the debacle selling quite a few shares around $7 for which i paid $2.60. i have no complaints about the money i made but i am tired of being treated as an afterthought by management. i still have a position but on a much smaller scale, hoping for the best but resigned to the fact that this management team hasn't changed at all. i am very disappointed.
Polaris and WSI both with great earnings. with WSI having locked up a long-term deal with Polaris the good news should continue for quite a while. the best is yet to come.
Sentiment: Strong Buy
I want to be on record saying that swissrat is nuts thinking 30 cents for this quarter. Nowhere did mgmt say the startup costs were finished. You people need to reread the last report. Also they guided to beat last yr eps which would by high 30s for the WHOLE YR not the next quarter.
I have found from many yrs of investing that stocks hitting fresh 52 wk lows dont generally report blowout numbers. They probably will be in the 12 to 18 cent range. Good luck to those expecting 30
so they earned 10 cents for the first 6 months and Ben has promised an increase over last year's earnings of 33 cents, that means they will earn at least 24 cents in the next 2 quarters. that is an average of 12 cents each quarter. if they ever get the start-up costs out of the way, earnings could be 20 cents or more in a seasonally strong quarter. looks like a great deal at 5 bucks.
i am not surprised by the earnings of 12 cents considering there must be additional start-up costs as well as new depreciation of equipment that was purchased. it's a good number. the next 2 quarters the comparisons will be against 2 and 4 cents respectively. if you thinking long term then everything is right on track. business is hopping and you have the right CEO for the job. thankfully his 2 year apprenticeship has finally come to a close. Benji will lead us to double digits if you have the patience for it. Those who do not will sell and miss out on a great little company
lets get real for a second. our biggest customer is Polaris (PII) and they are clicking on all cylinders, raising outlook again today. business couldn't be better for them and for WSI. $6.61 is such a bargain you will look back 6 or 12 months from now and wish you would have had the sense to load up at these levels. $5.50 is a pipe dream, never happen in this cycle. you will have to wait for the next severe downturn to see $5.50 again. i suggest you find some money and buy WSI at a level of less than 10 times next year's earnings. and i am putting my money where my mouth is. i will write again in january after they report record earnings and the stock is above $12. see you later.
WSI Industries and Polaris have a very strong relationship. business with Polaris is booming. there is NO impact from any moves to Mexico.
here's my reasoning, the new defense business is a small percentage of sales. i just don't think the start-up costs are going to affect earnings that much. PII business is booming, that's where the big profit is most likely coming from. also they have a nice mention of NOV on the new website. i would be expecting the oil portion of sales to pick up as well. PII and NOV might be 90% of sales. if they are humming profits will be there.
one last thing, i do not believe they would re-establish a 4 cent per Q dividend if they were expecting a 10 cent Q profit. a 40% payout ratio would be too high for this management. they are too conservative to payout that kind of percentage. hope i am right too jbom :)
last year profit for 1Q was 4 cents which should be beaten by a lot. i think that is the proper comparison not 4Q 2010. however, put me in the camp that believes they will beat 12 cents. guidance will also be strong and with that i am expecting $9 to $12 share price by end of january. i also added to my position when it dropped below $5.50. what a great entry point after the big run-up above $7.50.