Argyle Security, Inc. (ARGL)

[INTEGRITY STOCKS]

ARGL Wow, what a find!!

[otcbargains]

Agreed and frustrating.

[Axel]

Added very few at .27
Company should care more about the public newsflow. If it's majority owned by a fund, if I remember correctly, they will surely want to get out and move on at some point in time

[otcbargains]

Not right now. I am not sure what to expect from the 1st q. Will be buying more leading into the 2nd q.

[Axel]

Are you still scooping up shares? Every ask below .35 quickly gets bought up.
And they seem to be 25k although showing up smaller

[Axel]

Good luck! I was hoping for some in the twenties though

[woje]

I bought some too. I think this one is interesting because of the low float making it easier for it to go on a huge run.

[Axel]

Looks like I'm the only buyer here as of lately

[Axel]

I might be wrong but even though it's from an affiliate that doesn't mean that income is one time only right?
On the other hand money used to wipe out the prefs will be free cash flow in the future. I do not fully understand the tax refund though...

[jasonak]

http://www.otcmarkets.com/financialReportViewer?symbol=ARGL&id=117227

[otcbargains]

The affiliate income is through a joint venture in California. They paid of a bunch of preferred shares this q again. It looks the preferred shares will be completely paid off with one more q. It is also prison building season. Should get interesting.

[blindman28]

damn 10 million net income here although 6 million was from affiliate and 5 million was from a tax benefit. had - 955k in interest expense. Where their income is coming from is a little confusing. should be interesting to how the stock reacts… btw would like to talk to other people about these undervalued stocks but no one else follows them

[blindman28]

true but still some selling into bid so people can wait. if the bid/ask spread tightens it attracts alot more investors and liquidity and since this company is so undervalued the price will be in an uptrend

[otcbargains]

Bid have been moving up and ask is almost non-existent.

[blindman28]

the Fund that owns 70% of the common stock would be smart to tighten the bid ask if they lowered the ask to less than 5% above the bid there would be buying in an instance, this 20% spread just aint doing it at the moment.

[RidingFreeShares]

ARGL Loving everything here. C'mon Dollars!

[blindman28]

im going to stop spreading word about this company until i get in on tuesday

[blindman28]

also NSSC just released they expect the market for just school security and services to be about 5 Billion $ in 2017…..

[Stock_Barber]

I'm not sure that I ever have!

[blindman28]

also when is the last time you seen a penny stock with 14 highly qualified people on their management team

[otcbargains]

Nice. If I remember right they spend 7.5 mil last q paying off preferreds and past due interest. They only owe another 2 million. I think this is a rare opportunity.

[blindman28]

i saw a 2.5 million bid on a 30 cent stock 8 million market cap illiquid stock. that stock is now trading at a 77 million dollar market and is now on the nasdaq and it only took 6 months

[blindman28]

yea stupid me i am reading them now i did not go to previous page lol. interesting read from poster Bobwins which addresses my concerns about those converted shares
"He mentioned that a hedge fund owns over 70% of the company. They have been patiently waiting for 4 years. The company has provided them some liquidity on their investment by repurchasing the preferred stock. The hedge fund is the only holder of the preferred. The A shares have been completely liquidated and the B shares will likely be liquidated over time. This will reduce cash but also reduce potential share count and minimize the need for the hedge fund to sell into the public markets and reduce the share price."

[otcbargains]

They have paid off all the past due interest and dividends and over half the original debt if remember right. If you go through my old posts you can find it.

[blindman28]

so basically what my previous post is saying is that MML capital parnter llc own 22 million shares at a price of 0.4302. The million(s) question is at what price will they start to sell at above 0.4302. ... The good news is that the shares are already converted the bad news is that with 22 million shares they control the price.... i wonder if MML is CANT on the ask. if i personally were MML i would let the price run up and let ARGL uplist before i try and get my money back.

[blindman28]

found the golden paragraph in the last 10-Q filed from previous management here it is
"Because the Company did not conduct a rights offering as a result of the deregistration of its securities or
conduct another “qualified equity offering,” prior to June 30, 2010, (i) the Bridge Notes automatically converted into
an aggregate of 19,627,434 shares of Common Stock and (ii) the DI Note converted into 2,344,580 shares of
Common Stock, in each case, on June 30, 2010 and at a conversion price equal to $0.4302 per share. In addition, as
a result of the conversion of the Bridge Notes and the DI Note at the VWAP Price, the shares of Series B Preferred
Stock became convertible into 4,396,383 shares of Common Stock."
and more
"On December 14, 2009, Argyle issued, in exchange for cash, to each of the MML Funds convertible
subordinated bridge promissory notes (the “Bridge Notes”) in an aggregate principal amount of $8.0 million and
convertible subordinated promissory notes in the aggregate principal amount of $2.45 million (the “Convertible
Notes”) each convertible into shares of Common Stock at a price equal to $0.4302, which reflects the volume
weighted average sales price for the Common Stock from trades quoted on the OTC Bulletin Board for the ten
trading days ending on the day prior to the funding of the Bridge Notes (“VWAP Price”). Each of these notes bear
interest at 10% per annum. On each interest payment date accrued but unpaid interest on the Bridge Notes was
capitalized and added to the principal balance thereof. As the Company did not conduct a rights offering because of
the deregistration of its securities nor did it conduct a “qualified equity offering,” before June 30, 2010, the
outstanding principal and accrued and unpaid interest of the Bridge Notes was automatically converted into
Common Stock (see description of conversion below). In addition, as a result of there being no rights offering or
“qualified equity offering” before June 30, 2010, the outstanding principal and accrued and unpaid interest of the
Convertible Notes will be convertible into approximately 6,010,901 shares of Common Stock, at the option of the
MML Entities, at a price equal to the VWAP Price.
Further, on December 14, 2009, a promissory note was issued in favor of ISI Security’s subordinated lender
having an initial principal of $897,215.18 (the “DI Note”). Such note accrues interest at 20% per annum (with such
interest to be capitalized and added to the principal balance) and was convertible into shares of Common Stock at
the same time and at the same conversion price as the Bridge Notes"

[blindman28]

been diving deeper into ARGL past and management in 2009-2010 was horrible. it hurt my head reading the 10-Q ending september 30th of 2009. i am not smart enough to understand how they structure their debt and if they still have to pay those loans off by converting shares today

[otcbargains]

Great post and I agree. ARGL is severely undervalued

[jasonak]

We should see the annual in 10 days or so.

[Stock_Barber]

Very nice comparison!

Really puts ARGL's current price into perspective!

[blindman28]

Compare ARGL to NSSC. both companies are in security and systems sector and provide basically the same type of products and services.
ARGL Price to Book 1.6
NSSC price to Book 3.37
ARGL P/E 3.0
NSSC P/E 36.0
ARGL book value per share 0.30
NSSC book value per share 2.09
ARGL cash 1.2 million
NSSC cash 3.38 million
ARGL net income mrq 1.5 million ( trailing 9 months 4.8 million)
NSSC net income mrq 368 thousand ( trailing 6 months 491 thousand)

now both companies are in same industry and are subject to around the same industry growth rate trends.

ARGL market cap= 13.8 million
NSSC market cap=135.9 million
my only explanation for this discrepancy is that ARGL has kept share holders in the dark since 2010 and NSSC is trading on the nasdaq. but with the New CEO hired in march of 2013 for ARGL we have started to see reporting again.
It is only a matter of time imo before we see ARGL explode to over a 100 million dollar market cap. i also recommend reading CEO Ray Gilleys career it is very impressive to say the least
http://www.isisecurity.com/company/management-team/

[blindman28]

i would not be surprised trading a 1$ plus all metrics of this company are positive besides the liquidity

[otcbargains]

I mentioned that it was going to happen. It is nice to see that it has.

[RidingFreeShares]

ARGL Can't believe I haven't noticed that yet. Float got smaller in the past 3 years!!

Float 1,712,151 a/o Dec 31, 2013
http://www.otcmarkets.com/stock/ARGL/company-info

[otcbargains]

Did you notice the float has been corrected?

[RidingFreeShares]

ARGL Seems like the bigger blocks have disappeared for now atleast. Sellers done selling hopefully so we can continue our way up.

[otcbargains]

My baby here will grow up to be mighty strong. Annual report coming soon.

[Traderfan]

I got a few at 30 cents a few days ago. Let's see what comes here.

[jasonak]

Adding here as well.

[otcbargains]

Definitely one cheap undervalued stock. A little awareness would go a long way here.

[Steveadl]

On board with this one. Once future filings/earnings come out should prove very interesting.

Definitely under the radar at present, which is unusual for such a dominant company in its field.

Probably not a priority for management considering they only just started filing again, but will be good to see them change the name to ISI Security for the parent as well.

[RidingFreeShares]

ARGL I agree with you about the company not willing to PR and being discouraged. I would love to hear about everything going on with ARGL. They have plenty of money to do it. This would easily be in the dollar(s) if they would let more people in on exactly what's going on. I think it will get there anyway though. Will just have to have more patients than normal.

[micham2012]

I am long this stock, but it is discouraging that the Company will not spring for a press release. Supposedly doesn't want to spend the money, notwithstanding $37.5 million in revenue during the past 9 months. It is hard to avoid the suspicion that when insiders/friends have loaded up on all the shares they want, the funds will become available to publicize the company's success.

[RidingFreeShares]

ARGL Anyone looking to load up on shares... here's your chance. Not as thin anymore. Since the run to 0.74, people have taken this back down to 0.50. About $10,000 takes us back out of the 0.50's where hopefully we will be thin back to $1.00+ .

[RidingFreeShares]

ARGL Easy double picking up these 0.51's. This is easily going over a dollar, and might reach $2.00 with the right volume. No brainer picking these shares up from NITE.

[otcbargains]

Thin, thin, thin.

[RidingFreeShares]

ARGL There we go. 0.60's up. CANT has moved to 0.74. Looking really thin to $2.00!

[RidingFreeShares]

ARGL I wonder how many shares CANT is selling. 0.48's have had some hits over the past few trading days, he won't move and share quantity (2,500) doesn't change. Can't be much left there (pardon the pun). ha

[otcbargains]

There are some good third party articles out too.

http://www.securitysystemsnews.com/article/isi-security-wants-be-next-super-regional

http://www.prnewswire.com/news-releases/isi-security-group-announces-unified-brand-223535501.html

http://www.prnewswire.com/news-releases/ray-gilley-of-isi-security-group-publishes-position-paper-on-trends-in-the-chemical-security-sector-223899361.html

[RidingFreeShares]

ARGL The white papers are a good read. A lot of info there.