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Gencor Industries, Inc. (GENC)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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11.400.00 (0.00%)
At close: 4:00PM EDT

11.40 0.00 (0.00%)
After hours: 4:00PM EDT

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  • R
    Robo
    small caps getting shredded. interested here @ $8.
  • R
    Robo
    Very little money for roads, relatively speaking---way less than that to be spent on health care aides for seniors, and it will take years before it is spent w/all the regulations and choices as to which roads should be repaired or paved.
  • W
    WB
    No revenues generated by Blaw-knox but plenty of expenses. Management wants to build an empire even if it destroys shareholder value. I wouldn't trust Eliots to be good stewards of this business
  • W
    WB
    Gencor's value is its cash mostly which is invested very conservatively. The Eliots control the Board and have no interest in letting go of the cash. This company deserves a discount to its BV
  • R
    Robo
    Details of the Blaw-Knox acquisition---what they got and what they paid for it---will have to be detailed in the 10Q for the period in which the transaction closes, namely the quarter ended December 31, 2020. So by February 15, 2021 at the latest, which is the SEC deadline for filing that report, we will have all the details. Given the size of the transaction, we might even get a pro forma analysis of what GENC financials would look like with and without the acquisition included in the numbers. They can run but they can't hide from the numbers. The only way they could possibly avoid disclosure would be to sell or take the company private before the transaction closes---or de-list the stock ahead of the acquisition closing---which is probably unlikely.
  • H
    Harry
    Any thoughts on the recent quarter? The bottom line performance was impressive. Revenues & backlog were down. But gross margins were very strong, so they reported fiscal Q2 earnings of .51/share vs. .26/share last year. Even without the 1-time gains, looks like earnings would have been just under .40/share.

    One of GENC's seasonally better quarters (the other being the current Q3), but stock looks too cheap in the low $12's considering the fantastic balance sheet. Sitting on nearly $8/share in cash & marketable securities! Maybe the stock won't do much, but should at least have plenty of downside protection with that balance sheet. Not sure why someone hasn't already acquired GENC at $15-$20.
  • R
    Robo
    I really think this all boils down to a lack of transparency over the proposed acquisition and what it means opportunistically and/or what it means for remaining cash and securities value on the Balance Sheet post-acquisition, together w/the prospects for a new Infrastructure Bill (i.e. highway construction). We simply need clarification and resolution on both matters. The market hates uncertainty---and we have a bushel-basket full of it here. I don't understand why no guidance nor terms has been offered to the shareholder/owners of this company re:the proposed acquisition. Two classes of stock, two classes of shareholder citizens I suppose--- second-class citizens is how it feels.
  • C
    Catherine
    "In April 1994, WCI sold the Blaw-Knox unit, based in Mattoon, Illinois, to Clark Equipment Company for US$144 million ($248 million today)." Hopefully Gencor didn't pay 248M$, no more cash , but 150M$ debt
  • E
    Energy Saver
    Revenues continue to increase significantly, up almost 40% in the quarter and for the first half. Gross Margins were higher than I expected. I would have thought steel would take a bigger bite out. That looks like the biggest wildcard for the next few quarters. Will be interesting to see how the company will perform if the Fed gov't funds a $500B or $1T infrastructure program.
    GVA seemed very positive on their outlook for the next few years. MLM, VMC and SUM should also be positive on their outlook for domestic aggregates, asphalt and concrete.
  • R
    Robo
    Finally, Single Digits!---I have been waiting patiently for two years (see prior post 2 years ago). Time for me to "go dark" and quietly accumulate at what I expect to be even lower levels, as this market could easily mimic October 1987 or the SubPrime Crisis of late 2008-early 2009. I have been investing for decades and these opportunities come along once every 8-10 years. Averaging in and w/the full expectation that markets can overdo it both on the upside (a 12 year escalator) and downside with some debt-free companies' shares trading well below cash levels (6-12 month elevator). Good luck to all.
  • R
    Robo
    Might consider putting out some fishing lines in the single digits as poor cost guidance for the next quarter by the company renders this one knee-capped for a while. Worth a 5-year hold in the high single digits. The roads will eventually have to be repaired and DEMs will eventually rescind the tariffs in 2 or 6 years. In the meantime, Trump's tariffs are going to create once-in-a-life-cycle investing opportunities to buy stocks at cash value or for net working capital.
  • R
    Robo
    Getting close to the high single digits stock price I was predicting and hoping for. With $8.34 per share in cash and no debt---getting the rest of the company assets and property almost for free. Eventually the nation's roads will have to be repaired, even if a new road infrastructure Bill is a couple years away. When the FAST funds run out in 2020, the company's cash position w/no debt or interest obligations along w/ likely more state gas taxes to spur a little road construction work should help GENC bridge a possible funding gap until a new Federal Bill is passed. Hoping to get this below cash value per share in the low $8s, but cannot expect to time it perfectly--so nibbling even now and willing to average down from here makes some sense, at least to me. JMO, do your own due diligence. Love companies that have great share of their market w/no debt that end up trading near or below cash per share on the books. Hunting for such nuggets now in a market panic that throws everything away -----"especially for free"
  • R
    Robo
    When you do a deal and don't disclose the terms: that my friends is a privately-held company where only the owners' interests matters.
  • E
    Energy Saver
    Another solid year for Gencor. Revs up 15%, Gross Margins improved and looks like they could have been higher. Backlog of $61million going into FY18 is a huge increase. Their investments should benefit from higher interest rates, good to see they are buying more than just treasuries. Looks like FY18 will be
  • H
    Harry
    Nice move today! Should have a decent earnings report coming up. And then announce the finalized acquisition. Are the bashers still around? Company still a fraud?
  • R
    Robo
    Houtkin and other insiders collapsing the share the price again
  • a
    alan
    I kept some of my shares for tax reasons, but here is what turned me against the stock: I read some of the conference call transcript for ASTE, and it seems to me that the part of ASTE that competes with GENC did great while GENC was doing terribly in the last quarter. Admittedly, quarters don't totally line up.
  • R
    Robo
    After a really nice run and stock split, the shares have been mired in "value trap" territory in the mid-teens for a very long time. The BOD and executive management seemed little moved to address enhancing shareholder value via dividend initiation, share buyback, etc. despite a huge cash hoard. The "family first" mentality implicit in the classified shares and voting control of the company perpetuates the incentive of riding the gravy train of high annual compensation while letting the large mass of shareholders twist in the wind. It is as if they are saying: It is our company, we own it, we built, we control it--so shut up and take what we give you (or don't give you as the case may be). If they have to wait out the current Administration policy in tariffs and pre-occupation w/building The Wall over highway refurbishment, they still get paid to wait---paid handsomely indeed un-pressured by outside forces or outside shareholders. Add to that the insiders continually raiding their personal piggy bank and dumping heir shares. It would serve them right if the stock traded below cash value per share as it has in the past. The cash isn't worth much if they don't share it or do anything with it except pay themselves. This group deserves little respect from shareholders, not that it will matter to them in their own insulated bubble.
  • S
    Stephanie
    Genc nice quarter. Revs up 20%, Net Income up 70%. After reading Astec's report yesterday, I expected Gencor to have similar double digit declines.
    Neutral
  • R
    Robo
    FAST runs out September 30