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UUU - Some large bids appearing yesterday and today.
ALTO - Sounds like things are turning around for these guys. They reported their earnings last night. Stock price has just been hammered over the last six months. Trading way under book value. I think the risk/reward down here is pretty good. Lots of volume after hours yesterday and pre-market today.
HDSN - New bullish write-up on SA. Haven't read it yet.
https://seekingalpha.com/article/4601137-the-bottom-fishing-club-hudson-technologies-stock
GTEC - I've been accumulating this one as it has relentlessly fallen for what seems like forever. On Friday it hit a new-52-week low of $1.18. In the after hours session, it spiked up on heavy volume. Very strange stuff going on. Another mystery.
SGMA $4.30 + .81 - It looks like your low-float scenario is playing out.
Thanks, Gilead. Yup, you and Michael are dead on. (eom)
SGMA - Thanks, Michael. That explains it. Interesting how that works. Here's a good link if anyone is interested:
https://www.thebalancemoney.com/cost-equity-consolidated-methods-357583
SGMA - But won't they have to show 19 percent of the WAGZ losses on their income statement?
SGMA - That's great news. I wish they would have totally washed their hands of WAGZ, but getting rid of 81 percent is pretty darn good news. It sounds like the secured lenders kinda forced their hand.
SRTS - I thought this was an interesting, almost funny, exchange from the conference call:
Unidentified Analyst
Hi, this is Chase on for Alex. Thanks for taking the questions, guys. So help me understand the quarter a little bit better, Joe. I mean, walk me through kind of what changed. I get all the commentary of what your customers are going through. I mean, maybe just walk me through what changed from February kind of to the end of March, and then so far in April, through April there. What took expectations from year-over-year growth in those, two, three-month time periods to what looks like a, 50% decline in system placements at that minimum you guys gave?
Joseph Sardano
Well, nothing changed from February to March. It was the same from January to March. As a matter of fact, it was the same from December to the end of March. The inflation has taken over and it's caused a worry coming into the New Year. If it hasn't caused a worry for you and your own personal life, then you're making more money and need make. I'm happy for you. But it's impacting every one of the individuals and the doctors that are out there, their staffs and everything else.
So everybody's hanging on it. They're belts wondering where is it going and they're just waiting to see what might shake out. So there's two things that are going to happen. Something is going to shake out.
I haven't seen our government step up to doing anything regarding inflation as a matter fact they're probably promoting more of it than we're seeing necessary. I mean, we're also seeing banks that are going out of business and there's not a whole lot of questions out of the banking industry or from anybody else as to what's going on with the banks and how is it impacting business.
But it is, regardless, I mean, if it's not impacting us, then it's impacting our doctors because they're the ones dealing with those banks. And if one bank is a problem, then all the banks have a problem, because they start tightening up their belts. So this is very common. It's very obvious.
It's very clear as to what's impacting individuals and making decisions. It's the same thing that's impacting you and me in making decisions in our own personal life. When you take it into a business, now it becomes even more serious because they're expecting certain revenues that have to pay the bills.
And I want you to think of this, I mean how many of us are going to our bosses asking for less money these days. Everybody wants more. Everybody needs more money. because gas prices are up, groceries are up, all of this stuff. So again, these business orders are faced of keeping their best employees happy by giving them more money, by seeing their cost of operation going up, their toothpaste is going up, their band-aids are going up, all of their stock is going up and now we compound that with their business down by 25% at least. All right. Nothing has changed.
Nothing that we see from the economic markets are going to change unless you guys tell us. You guys are the financial experts. Tell us what's changing in the financial world that's going to change or adjust our inflation rates. We should be asking you the questions. So tell us, give us some answers as to what these guys should be doing to overcome inflation and to keep producing the business because they need to hear those answers.
The small stuff right now is loathed, despised, and detested......but not necessarily in that order.
POLXF - Wow! Gold in the otc market:
Polydex Pharmaceuticals Limited and BioSpectra Inc. Announce Business Combination
GlobeNewswire - Apr 27 13:40 EDT
TORONTO, April 27, 2023 (GLOBE NEWSWIRE) -- Polydex Pharmaceuticals Limited (OTC Pink: POLXF) (the “Company” or “Polydex”) announced today that it has entered into a Plan of Arrangement agreement (the “Arrangement Agreement”) whereby BioSpectra, Inc. and BioSpectra Canada, Ltd (together, “BioSpectra”) will acquire all of the outstanding common and preferred shares of the Company for total consideration of $6,940,000, of which US$6,924,980.02 will be paid for 3,432,478 common shares outstanding and US$15,019.98 will be paid for 899,400 Class B Preferred shares outstanding. The price per common share is US$2.017.
Under the Arrangement Agreement the transaction will be effected pursuant to a statutory plan of arrangement (the “Arrangement”) under section 182 of the Ontario Business Corporations Act (the “OBCA”). The Arrangement will result in each issued and outstanding share of Polydex being deemed transferred to BioSpectra by each Polydex shareholder, without any further act or formality on the part of the Polydex shareholder, and each Polydex shareholder shall receive the Consideration in exchange for their shares.
The Board of Directors of the Company has received a fairness opinion from Evans & Evans, Inc., an independent consultant that provides business valuations. The fairness opinion supports the terms of the Arrangement and the Consideration as fair to the Company’s shareholders. The Board has approved the Arrangement and the Arrangement Agreement.
The Company will seek an interim order approving the deal from the Ontario Court of Justice. Following receipt of a favorable interim order, the Company will call a meeting of shareholders to obtain shareholder approval. Shareholders will receive a Notice of Meeting and Information Circular prior to such meeting. The Board of the Company unanimously recommends approval of the transaction.
If the Arrangement is approved by shareholders at the shareholder meeting, the Company will then seek a final order from the Ontario Court of Justice approving the Arrangement and authorizing its closing.
George Usher, the President and CEO of Polydex commented that “We are extremely pleased with the transaction we have struck with BioSpectra. This transaction comes as a conclusion to a long process undertaken by the Board to enhance shareholder value. We have studied multiple options and believe this is the best one for our shareholders.”
Polydex, based in Toronto, Ontario, is engaged in the manufacturing of bulk pharmaceutical intermediates for the worldwide veterinary pharmaceutical industry and also the development, manufacturing and marketing of biotechnology-based products for the human pharmaceutical market. The Company focuses on the manufacture and sale of Dextran and derivative products, including Iron Dextran and Dextran Sulphate and other specialty chemicals. The Company conducts its business operations through its two wholly-owned subsidiaries/divisions.
The manufacture and sale of Dextran and derivative products is conducted through Dextran Products and Chemdex Inc. which is incorporated in the State of Kansas, United States.
Contact:
Investor Relations: Linda Hughes, PolydexIR@gmail.com
Company website: www.Polydex.com
UUU - I've been adding to this one, also, along with a lot of other stuff that can't seem to find a bottom.
The current mindset of the market is that all microcaps are guilty until proven innocent.
T - AT&T upgraded to Buy from Hold at HSBC
TheFlyontheWall.com - Apr 20 20:39 EDT
HSBC upgraded AT&T to Buy from Hold with a $21 price target.
MIND - Nice improvement, but even with that level of revenue the company is still not profitable when you throw out the one times and deduct the preferred dividend.
GSMG - Sometimes you have to ask yourself: Does this make any sense?
The stock closed at 48 cents yesterday. Here is the PR that was issued this morning:
BGFV - The lone analyst keeps ratcheting down his estimates. The history for the current quarter:
90 days ago: 28 cents
60 days ago: 19 cents
30 days ago: 3 cents
SPWH - I was thinking the same thing. BGFV is holding up much better than I thought it would so far this morning. You gotta start to wonder about BGFV's current dividend rate.
TAIT - I think not putting out earnings PRs is working in their favor today!
TAIT - Sold my position even though they are paying a nice dividend. This statement in the 10-K issued Friday isn't exactly encouraging:
SGMA - The sentiment in MicroLand has been horrible lately, but seems to have started to shift. I feel like a lot of these microcaps are compressed springs ready to break out to the upside. As far as SGMA goes, it is definitely not priced for perfection at $2.65. They have a tangible book of over $10 per share and strong earnings power even including the WAGZ losses. Definitely can't blame anyone for taking profits in a yo-yo market like this.
PPSI - I still own it, Michael. Nice growth story. Seems like it could be valued quite a bit higher than it is. I bought a few more on the earnings news.
SUP - I'm out of this one after selling most yesterday and the rest this morning. In retrospect I should have just passed after looking at the balance sheet. What attracted me to the stock was the projected operating cash flow number.
The more due diligence I did, the more uncomfortable I became holding the stock. There are a lot of cross currents here. I could see this going much higher or much lower.
The way they present the preferred dividend in the income statement is bizarre. It doesn't show up in the net income number, but it does in the EPS number. That was excedrin headache number one.
The preferred seems like a menace with the redemption value rising. The long term debt is huge plus they have negative equity. In addition their interest expense is rising.
Supposedly there is an analyst out there with a $10.50 price target, yet on Yahoo Finance the lone analyst had a 2023 estimate of $1.35 EPS 30 days ago, and now it is down to (.04). Excedrin headache number two.
Even though the operating cash flow numbers in 2022 were larger than they are projecting in 2023, that only resulted in an EPS of 2 cents.
In the recent past there was a buyout offer for $5.85 a share.
Anyway, I'm out. Good luck to anyone who is in.
I took a nice loss on this one. I should have done more due diligence initially.
SGMA - No telling when they will file. They already missed the additional five-day period last Friday. A bit of a mess between the WAGZ impairment and the loan covenant breach. It would be nice if they would accept the fact that they screwed up acquiring WAGZ and just get rid of it whatever that entails. Goodbye and good riddance.
I've continued to accumulate SGMA along with lots of other micros that continue to get punished. Sporting a tangible book value over $10 a share, I think it is pretty cheap down here.
Interactive Brokers - I've had to deal with that quite a few times. It's irritating as hell, especially when they drag their feet lifting the trading restriction, and you have to call them after you have already let them know that you're not an affiliate. I've even had it happen when I was holding short positions in some thinly traded stuff. Mind boggling really.
Interactive Brokers has some really good features, but they seem to be over the top on the regulatory stuff compared to other brokers.
There is an interesting list of names on the new 52-week highs list today. Some of them have had huge moves over the years to get to their current prices:
AEHR $38.60
CVR $30.74
GENC $15.05
IMMR $8.08
NSSC $36.87
PERI $37.78
PESI $9.20
PLPC $120.34
PMTS $42.59
TA $86.07
VOXX $12.07
AEY -Sentiment in microcapland is horrible right now, and the AEY price action today pretty much confirms it. It's not like it was priced for perfection prior to the earnings announcement, and it is a seasonally weak quarter, and the comp was good.
SGMA $2.31 -.82, is getting horsewhipped this morning. I think it is a bit overdone here, but I thought that in the $2.70s, also. I have been accumulating more today all the way down to $2.30! Lots of nervousness in the market.
SGMA - WAGZ....management stop the bleeding! It reminds me of SMIT going into the ice cream business. Their stock is now going for about a penny a share! That boondoggle took down the whole company.
As far as SGMA goes, their main business has been doing well enough to not only offset the WAGZ losses, but to put up very good numbers. I get about 25 cents a share last quarter after adjusting for the one-time tax thing.
Tangible book value is over $10 a share. A lot of bad news is already reflected in the stock price which has been down nine days in a row. As far as violating the loan covenant, I don't think that's going to be a major issue.
I bought more today in after hours in the $2.70s. Anyone else interested down here?
SPCB - As a testament to how bad this market is right now for the microcaps, SPCB had a contract announcement this morning and traded up into the low 2s in the pre-market. Later in the morning, it hit a new 52-week low at $1.44!
Rough market lately. This situation with the banks is really freaking people out, and it's definitely an extremely serious issue that needs quick resolution.
I think the banking sector in general will come out of this with some cuts and bruises, but will overall be okay. Leaning on that outlook, I have been picking up some of the stuff they have been throwing away recently including:
SUP
AMMX
STRT
SGMA
BOSC
DYNR
TSSI
HDSN
EGY
NHTC
SELF
GURE
ALTO
AMRK
RCMT
FSI
EDUC
APT
GTEC
ELTK
BAC
ACCO
VTSI
GOOGL
CODA
ETCC
SUP - Now I know where a good portion of the selling pressure was coming from recently. Insiders!
https://www.sec.gov/Archives/edgar/data/95552/000156218023002633/xslF345X03/primarydocument.xml
https://www.sec.gov/Archives/edgar/data/95552/000156218023002632/xslF345X03/primarydocument.xml
https://www.sec.gov/Archives/edgar/data/95552/000156218023002631/xslF345X03/primarydocument.xml
SI - I really thought the suspension of the preferred dividend on January 27 was a huge red flag, and the stock should have gotten hammered that day. Unfortunately the market didn't see it that way, and I covered the short the same day. Win some, lose some.
SUP ($6.23 -.98) Got a horsewhipping today. I was surprised to see it come crashing down this far. I bought more as low as $6.25 late in the day. I noticed this afternoon that a bullish SA article was published this morning. It did wonders for the stock!
Momentum can sure be a powerful force. Sometimes I think these technical traders are beating each other over the head with their stock charts and exacerbating the momentum while having no clue as to the fundamentals of some of these companies.
Here's the link to the SA article:
https://seekingalpha.com/article/4585203-superior-industries-sup-3-reasons-to-be-optimistic#comments
GEODF - Geodrill price target raised to C$4.75 from C$4.50 at TD Securities
TheFlyontheWall.com - Mar 07 12:42 EDT
TD Securities raised the firm's price target on Geodrill to C$4.75 from C$4.50 and keeps a Buy rating on the shares.
SUP - Picked up some more in the $6.40s this morning. Still love those cash flow projections.
SUP - Thanks for the info on how some of the other auto parts stocks are faring.
It would have been nice to have snagged a bunch of SUP at the opening price of $5.68 on earnings day. It's tough sometimes when you're trying to get through a bunch of press releases and at the same time not miss something important.
SUP has been on a tear since announcing earnings last Thursday morning. It closed at $5.54 the day before earnings were announced. I don't like the massive amount of long term debt they are carrying or the state of the balance sheet in general, but what caught my eye was their projection for operating cash flow for FY 2023.
I wish I would have bought when earnings were announced, but I didn't. I bought this morning in the pre-market at $7.00. I guess we will see where it goes from here.
UUU - I have been reloading, also. (eom)
SI - Great job, Nelson. Even if it was only in your dreams! When they say, timing is everything, that's definitely the case here.