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Long time holder selling
I've hung onto this company for quite a long time 2+ years...rationalizing with myself that a turnaround could take place at some point and that the value disconnect between the underlying assets was too big to ignore. At some point they would be profitable or that a company trading at 3x PE would have to rerate. I had a commitment bias that was disastrous in terms of opportunity costs.
I could no longer wait for the turnaround to happen given the management team that is in place. Sam treats shareholders as third class citizens and I couldn't justify holding onto a company that treats shareholders like this. No conference calls, annual meetings in Scranton in the middle of winter, disastrous capital allocation over the course of several acquisitions. Deals with board members for their inept companies with little communication to shareholders. A non existent IR team. I could go on... Its painful to realize this and take a loss, but I'm ok with getting out and not having the continual anger that goes along with riding this pig.
There are far better run companies with far better moats and better management teams that my cash could be invested in. I don't believe JCP will have the success in taking this bag over and for that reason I'm finally out.
WF
Decent trading volume has something to do with bankruptcy? I thought profit and loss do? Shares exist for one reason, to buy a % in a company.
Example: MUEL - very illiquid stock, must be going bankrupt by your logic? Oh, except they make money for shareholders, regardless of their share trading volume or exchange...
I remember BRK.A traded on the OTC for quite some time before up-listing to the NYSE...
I hope it breaks the 200 and goes to less than $2.
Disappointing? I believe you mean 'On sale' :)
I'm still here...not much news in the past quarter. I think the future is very bright considering their international growth. Until they stop growing, change management, or the story changes I will be here for the considerable future.
I think one of the things that has drawn my attention from not investing heavily is the slim margins in this business, and that's not to say that businesses don't excel with them(Amazon), but for me, its a microcap, the margin of error is extremely small vs a 140 billion dollar company in AMZN. I know that many are strictly evaluating on a p/s basis, and I tend to agree that the p/s metric should be used, however I guess I'm thinking out loud here that the margin of error is so small that any downturn in business is going to put extreme pressure on the company and stock given that opex is 98% of revenue.
Here's a list of CEO's who at one point went bankrupt:
Walt Disney
Henry Ford
Milton Hershey
John Heinz
Thomas Edison(didn't go bankrupt, but failed numerous times)
Bankruptcy is not the end all be all and I don't assume anything based off of it, it could have been he wanted to get out of the fabric business and get into something more profitable with higher margins. Have you talked to him about this?
I'm not implying that Kubota is the next Walt Disney or Henry Ford, but I like to look at facts, not "oh he went bankrupt so he'll do it again". Many have failed, and many will continue to fail in business & life. But what I do know now is that the company is growing quite fast, with high margins, little debt, doesn't need significant cap exp to continue it's growth, and is clearly undervalued on most financial metrics you would use, with undervaluation being based on the uncertainty of revenue impact from the core customer that they didn't do anything to lose, but happen to be rolled up into an acquisition.
Random posts about bankruptcy I believe are ill founded for PFHO and quite frankly disingenuous if you don't have proof or significant facts to back up your accusations.
Stock is up today when the indices are down over 1.5%. Bankruptcy is imminent with the $0 in long term debt, Small 50-60% quarterly revenue growth, slim 20-25% net margins, and +$3 in cash per share. Get out while you can people.
Are you at all concerned that every manager makes over 300K? I mean with that high % of ownership shareholders are basically at the whims of these guys that all collectively make close to the ttm EBIDTA of the company.
From my perspective; If I make 300K a year, why would I need to grant myself options for a $.60 stock?
Not chastising wealth or income at all, just a concern of mine in relation to other companies I invest in. Also could be a plus if they were to get acquired as you could get rid of close to $1 Million in salaries right there for the acquiring company.
I agree though on the growth, the space their in, and their competitors trading at higher multiples. An additional concern is their % of revenue concentration to 1 company, any thoughts?
I would have preferred an open purchase with his own money rather than options. The extremely high inside ownership of this company and lack of investor communication is the one thing that hinders me from owning a real position in this.
By dead in the water you mean staying at or around these price levels?
I like the markets reaction to this one. I'm a buyer at these levels as UR revenue grew 136%.
I think the long term growth potential is still intact.
Good Volume today...
Someone wanted to sell their stock. Nothing's changed with the underlying business.
I like this companies focus.. Expansion into Texas signifies the CEO's vision of focusing on profitable areas that the company knows well(oil and gas).
They certainly did. What's most important to me is the international growth. The fact that they're a $59 million dollar company with 36% growth internationally signals to me the exponential growth that they are focused on. Also I really like the brand power that they've already got.. To have that this early in the game signals some staying power and they can leverage that into higher margins down the road.
I've held on to XPLT for close to a year now, the growth is still there and the stock should move higher after this weeks earnings. I think they have a very solid brand.