The news that tablets will be in patients hands in "... a couple of weeks.." probably woke some of these people up and focused their minds.
They need $7.1M to buy the germplasm piece they didn't get from Pioneer. Guess they have that now. Maybe they can bolt on another acquisition to diversify their forage focus to include a broader array of offerings than just alfalfa?
I agree. The bulk recycle, large batch recycle biz is commodity driven. The international licensing deals weren't going anywhere in the bulk recycle area until oil recovers -- maybe over $50//bbl -- don't know the economics of it. I know glycols are not tied strongly to the price of oil -- there are only a few large manufacturers of the basic stuff around, but it does influence the price.
IRM indicated they will now have $45 M/yr loss of synergies given the larger than expected divestments required to seal the deal. They get $220M for those divestments, which IRM indicated they would use to pay down their debt (deleverage). In the long run. Not a good development. Maybe the reason for the drop.
It is a good deal if the brazil-denominated debt was relatively expensive when issued, but now is being bought back with cheap brazil currency (as reflected in the US dollars being used to buy it)
Looked through the latest report:
- No longer talking about equity sales and need to raise additional cash/debt
- Indications last quarter's loss was made worse by NJ closure causing plant to lose more than usual
- They paid income tax for the quarter
- Generated some cash before the stock sale
- Write-offs make it unlikely they will make profit, but cash flow seems to be going in the right direction
- No mention of outcome of bid or contract win that might generate another site in Texas region. No discussion on what became of it, or the international franchising mentioned previously.
- S. Carolina is the new NJ. No surprise, but we received confirmation
Still think Tex/Ark/OK/La has to be an area they are looking to expand into. Just seems to be in line with where they seem to be going
Idle, Recall seems to be the whole show that is tying up much of the effort. Maybe they needed people who know how to operate a REIT? Correct about the need for a positive outcome on the Recall merger.
Brian.Book is $3.69/share. So the selling price adds to equity. The debt previously converted at six bucks, but reset to $4.60, where the debt converted to stock at $3.60/share I believe? So, I'll take $4.15. The debt also paid 8%. I believe this deal is a plus.
Shrimp - They had accrued $800K on their books as part of a settlement. I note that they will continue paying for the lease (equipment and site) this year. So let's say ~$65K/mo. Gets you close, no? I don't see how they get their $2M now. My guess is the landlord wants the industrial permit back from the company. I'm not sure what the write-off will be. I'm thinking of all the repairs and redos they did at the site. I lost count frankly. I could imagine an industrial green-field site in Texas where land is cheap, glycol and chemical plants/uses are extensive... If north Jersey was tempting due to the synthetics the N. Texas and the Gulf Coast has an extensive petro-chem biz with not dissimilar needs. I agree a better explanation of how they will go forward with their tech leadership is something for them to address. I'd like to see their cash position significantly improve as a first step. Getting rid of the NJ black cash hole certainly helped.
Alpha - He missed his easy chance at $0 for GLYE. We were headed there before he showed. We don't have long to wait. Bring the subject up again when we get 2Q16 results in. You will either be vindicated or will be eating crow.
wienaty - look at the reservoirs at SABESP. As they keep going up, so will the stock. They should be in great shape by the end of the rainy season. Over 1/3 full now. Were at 5% two years ago.
Tom - You know the funny thing is if they announce a partnering agreement for CLB20 to go with their prospective heart repair candidate they already announced, then the dilution risk going forward is small. The stock should be able to move back to close to 1 buck, if not there. They are spending $6M to expand the clean room, so they obviously are anticipating announcing additional business on the PCT side.
Jca -- believe if they announce a partnership for CLBS20, say for example with Roche et al., then tomorrow's meeting would be a plus. This evening's announcement after earlier 'focusing' efforts smacks of desperation.
They finally cleaned up the map a bit. NJ is closed and the investment is written off. They stop losing $100K/mo, and the work/customers have been distributed to other centers, thus making them more efficient/profitable. So, a positive for cash flow, and they don't have to pay the other $250K the NJ landlord wanted. However, the investment write-off (be nice to know how much and when) will cut book value and cut any potential profit. That's okay. The investment was probably gone last year, but talking gave them a chance to move the work to other centers, beef up capacity and finish the restructuring. Now, does the book value go from 0.18/share to 0.08/share or lower? It is pretty obvious why they need the capital raise now.
Some cryptic wording about expansion to Texas (if they win the bid), or else east of the Mississippi south or Midwest (say a corridor form Ala/Miss to Tenn and Indiana/Michigan? Some talk of profitability in 2Q16. It will be a positive to get more patents in place, but I'd settle for positive cash flow and continued top line growth. Getting past NJ is a step forward. Looks like the question now is whether they can get the margins, volumes and sales necessary to get to profitability.
Effects of the drought aren't over, but the system is up to 30% FULL. Beats the 12 - 5% we've been doing the last few years. Need more... a lot more rain.
Sinatra. Company is a turn-around story. Make your judgments based on that metric. The old guard were more on the 'pump' side. The Jersey plant has been a millstone: technically, operationally, profitability and capacity-wise. If we knew how that was going to work out, the risk in this stock would be less. The rights offering is obviously meant to reward current shareholders ... and dilute the old guard. That is probably fair, since they seem to have made significant progress in righting the ship. Now, in fairness, we need the price of oil to go to 60-70 bucks a bbl to move this significantly higher.