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IRS - They need more people to answer the phones. The last couple times I called, I got a message saying they were too busy and to call back another time.
HDSN - I bought back the half I sold yesterday. Making lemonade out of lemons I guess. The market is great at keeping a guy's ego in check!
HDSN - The market didn't seem overly impressed with the results. I ended up selling half of my holdings before the market closed today. I'm hoping that ends up being a bad move.
I thought the conference call was pretty positive. I'm definitely not clear regarding what's going on with their taxes. Supposedly there was a tax benefit this quarter of $11.6M. If you add that to the income tax expense they're showing for this quarter, that equates to a 40 percent tax rate. Doesn't seem to make sense. Maybe someone can chime in on this.
Here was the CEO's response on the call when he was asked a question regarding the company's over $290M revenue target for the year:
In addition, the crazy amount of buying power it ties up in your brokerage account is another disincentive to short these highly speculative ones. For example in my Etrade account, shorting 1000 shares of GME at 36 would tie up $144,000 of buying power. That's nuts.
HDSN - I'm still debating how much of this I want to hold into earnings. It would be a much easier decision if it was still in the 7s.
There seem to be a lot of pros and cons here. The last quarter was a blowout even with a one-time charge. Now comes their usually strongest quarter. On an EPS basis it looks really cheap.
The company did say their margins would be trending down. The stock has had the nice run recently. Their NOLs are way down after last quarter, so a higher tax rate may be coming soon.
Thinking about this one has scrambled my brain a bit.
KEQU - Thanks, Gilead. That mirrors what the CEO said in the last earnings release:
"Further, actions taken during the year to align pricing on new orders with rapidly inflating raw material inputs substantially mitigated the cost/price mismatch that we experienced during the previous four quarters."
Sounds like they have a handle on it now. I was waiting forever to buy this one. I thought for sure they would turn things around sooner than they did.
KEQU - A little insider buying the last couple days:
https://www.sec.gov/Archives/edgar/data/0000055529/000152220922000002/xslF345X03/wf-form4_165790018838575.xml
I never understood what happened to this company. They used to be nicely profitable, but then went into this weird profit tailspin that seemed to take forever to come out of.
Between their latest earnings report and the insider buying, things seem to be looking up.
CVUA - Another excellent summation! (eom)
CVUA $1.31 -.44, I think that's a pretty apt summation:
CVUA - Just when you think it can't get any worse. From yesterday's 8-K:
Item 8.01 Other Events
As previously reported, CPI Aerostructures, Inc. (the “Company”) is not current in its Securities and Exchange Commission (“SEC”) periodic reporting obligations (overdue Company SEC reports are referred to herein as the “Delayed Reports”). Companies that are not current in their SEC reporting obligations in accordance with the provisions of Rule 15c-11 (“Rule 15c2-11”) promulgated under the Securities Exchange Act of 1934, as amended, do not have current information publicly available, and do not meet the requirements for ongoing quoting of their securities on one of the public markets (the “OTC Markets”) operated by the OTC Markets Group. The Company does not expect that the Delayed Reports will be filed with the SEC by July 14, 2022, the end of Rule 15c2-11 15-day grace period for the Company to have current information publicly available. Accordingly, the Company’s common stock, which is currently quoted on the OTC Pink Limited Information market tier, will be designated for quoting on the OTC Markets Group’s “Expert Market” effective July 15, 2022.
The Expert Market is available for unsolicited quotes only, meaning broker-dealers may use the Expert Market to publish unsolicited quotes representing orders from certain retail and institutional investors who are not affiliates or insiders of the Company. Quotations in Expert Market securities are made available to broker-dealers, institutions, and other sophisticated investors.
The Company intends to become current in its SEC reporting obligations by filing the Delayed Reports as soon as practicable. The Company anticipates that after it becomes current in its SEC reporting obligations its common stock will be eligible to trade on an OTC Market through the filing of a Form 211 with the Financial Industry Regulatory Authority or reliance on OTC Market Group’s current information designations in lieu thereof. There can be no assurance that the Company’s common stock will be quoted on an OTC Market or any other market or exchange or when that may occur in the future.
HDSN - Seems awfully cheap in the 7s. I've accumulated a healthy position as it has fallen. The CEO does sound upbeat, so hopefully that's a good sign.
HDSN - Looking back, those operating projections were actually in their 2022 Q1 report issued on May 4, and out previous to that apparently. From the Q1 report:
"We previously communicated longer term targets for 2023 through 2024 with annualized revenue and operating income of $350 million and $72 million, respectively. With our visibility today, assuming the first quarter pricing trend continues, we believe we are on a path to reach those longer term targets at a faster rate than originally expected, as we begin to experience the initial impact of the AIM Act and its regulations."
So, I have no idea why it is headed down beyond the weak market.
HDSN - I think their latest investor presentation may have something to do with the weakness along with the generally weak market. People probably weren't overly enthused about their 2023 and 2024 operating targets relative to the numbers from their 2022 Q1 report.
I have been averaging down. I still think it looks cheap even with those 2023 and 2024 operating targets.
https://seekingalpha.com/article/4520075-hudson-technologies-hdsn-investor-presentation
EBIX - You gotta have a positive attitude. It's already almost 10 percent of the way there!
EBIX - And the plot thickens:
Ebix has 'long history' of disproving shorts, says Craig-Hallum
TheFlyontheWall.com - Jun 17 08:24 EDT
Craig-Hallum analyst Jeff Van Rhee maintains a Buy rating and $150 price target on Ebix after Hindeburg accused the company of "fake revenue" in a short report. Van Rhee tells investors in a research note that Ebix has a long history of disproving the shorts, and sees this time as no different. He remains convinced of tremendous intrinsic value in Ebix's underlying business.
Phoenix, AZ is the poster child for this. Homes in the slummiest of neighborhoods are going for top dollar. There has been a ton of artificial demand created by the home flippers and the buy to rent out institutions. Inventory has been rising sharply recently, though, so maybe it is at an inflection point. If any market has a good chance to crash, I would think it would be the Phoenix market.
Harte Hanks set to join Russell Microcap® Index
PR Newswire - Jun 07 07:55 EDT
CHELMSFORD, Mass., June 7, 2022 /PRNewswire/ -- Harte Hanks, Inc. (NASDAQ: HHS), a global customer experience company, is set to join the Russell Microcap® Index at the conclusion of the 2022 Russell indexes annual reconstitution, effective after the US market opens on June 27, according to a preliminary list of additions posted June 3.
BIG hits a new 52-week low today. Funny thing is this buddy of mine told me he bought some patio chairs at 50 percent off at Big Lots yesterday. Going through their latest earnings report, they said that their inventory level was up 48.5 percent from last year. I can see why they're trying to move some stuff out the door.
DKS now up over 2 bucks on the day. You gotta be a riverboat gambler to trade these things after earnings.
DKS - more collateral damage. Ugh. As a value investor, it's tempting to start getting into some of these retailers, but it's tough when they keep blowing up!
This interview took place yesterday afternoon before the market closed. What he said regarding retail really hit a chord with me. I think between the negative wealth effect of the the stock market decline and general inflationary pressures, it's going to be very tough for the retailers for the foreseeable future. After the market closed, ROST got brutalized upon releasing their earnings.
https://www.cnbc.com/video/2022/05/19/watch-cnbcs-full-interview-with-cantor-fitzgeralds-eric-johnston.html
mandjb, this Cramer quote from your post is surely a classic:
Lots of collateral damage after Target's earnings report. Retailers hitting new 52-week lows this morning:
BBWI
BBY
BGFV
BIG
DKS
FIVE
JOAN
KIRK
KSS
SBH
SCVL
TGT
WMT
WSM
TAIT - I believe this explains the big tax benefit. From the 10-Q:
"Deferred Taxes – If determined that it is more likely than not that we will not realize all or part of our net deferred tax assets in the future, we record a valuation allowance against the deferred tax assets, which allowance will be charged to income tax expense in the period of such determination. We also consider the scheduled reversal of deferred tax liabilities, tax planning strategies and future taxable income in assessing if deferred tax assets could be realized. We also consider the weight of both positive and negative evidence in determining whether a valuation allowance is needed. However, we have fully reduced by $1,915,000 the entire valuation allowance against our net deferred tax assets at March 31, 2022 primarily as a result of our recent history of net income."
Now the $64,000 question is whether they are going to start showing tax expense? The next question is even if they show it, are they really going to be paying it?
I'm guessing they start showing the expense, but I could definitely be wrong.
SMDM - Good news this morning:
Fort Lauderdale, FL, May 17, 2022 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (OTCQX: SMDM) – the worldwide leader in consumer karaoke products today announced it is launching a new line of karaoke products to be nationally available in the consumer electronics departments of approximately 3,200 Walmart stores nationwide.
The Company announced it will be launching a total of eight new karaoke products into the consumer electronics department at approximately 3,200 Walmart locations nationwide, representing almost 90% of all Walmart stores in the United States. Starting this May, Singing Machine will have a dedicated 4-feet of shelf space within the department to showcase its new SingCast technology line of products and a new PitchLab streaming microphone designed for YouTube vloggers, gamers, and conference calls.
The new retail relationship marks a significant expansion for the Company’s distribution channels which already consist of distribution into Walmart Toy departments nationwide. The new Consumer Electronics distribution partnership will be incremental to the existing Walmart Toy department distribution, providing the Company with a new, expanded marketing opportunity for its industry leading product portfolio with the largest global retailer.
Gary Atkinson, CEO, commented, “We are thrilled with this new distribution announcement. We will now be featured in two of the most prominent and sought-after departments within Walmart stores – toys and electronics, which is unmatched in our industry.”
“This deal represents almost a year of planning and is potentially transformational to our business. The consumer electronics department of Walmart is the premier destination for all major electronics brands around the world. Walmart is extremely selective in the brands they choose to offer their shoppers and selecting Singing Machine is great validation that karaoke is still in strong demand and that Singing Machine can compete at the highest level with the biggest global brands,” Mr. Atkinson concluded.
The new 4-foot assortment will include suggested retail price points from $9.99 to $149 and include a wide range of karaoke machines, microphones, portable Bluetooth® microphones, and a new all-in-one podcasting, video blogging, gaming, and conference calls computer microphone featuring new proprietary PitchLab vocal processing technology which will provide pitch-correction and dazzling vocal effects.
Bernardo Melo, the Company’s Chief Revenue Officer, commented, “The consumer electronics department at Walmart offers the highest consumer foot traffic of any other comparable retailer and to have 4-feet of shelf space within the department allows us to provide a wide assortment of karaoke products and will give Singing Machine unprecedented exposure to millions of Americans around the country that may not have seen our karaoke products before. Additionally, electronics shopping purchases tend to have significantly higher average selling prices (ASPs) which allow us to provide higher quality features and functionality to our customers. We are grateful to Walmart for the opportunity.”
About The Singing Machine
Singing Machine® is the leading provider of karaoke products to consumers across the world. The Company offers the industry's widest line of at-home and in-car karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. The Company’s products are sold in over 25,000 locations worldwide, including at well-known retailers such as Amazon, Costco, Sam’s Club, Target, and Walmart. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products. To learn more, go to www.singingmachine.com.
Investor Relations Contact:
Brendan Hopkins
(407) 645-5295
investors@singingmachine.com
www.singingmachine.com
www.singingmachine.com/investors
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2021. You should review our risk factors in our SEC filings which are incorporated herein by reference. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
GTEC - I've been accumulating the past few weeks and bought more this morning. I was really surprised that it got into the 2s. I also own some warrants.
HHS - Thanks for the cc info, Nelson. This was one heck of a find by littlefish in January of last year:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=161094412&txt2find=hrth
NAII - Looks like they are projecting a big 4th quarter as this blurb from the PR would indicate:
"Based on our current sales order volumes and forecasts we have received from our customers, and despite the continued challenges with supply chain and staffing shortages, including challenges from COVID-19 employee absences, we now anticipate our consolidated net sales during the fourth quarter of fiscal 2022 will increase between 18.0% to 21.0% as compared to the fourth quarter of fiscal 2021. We also anticipate operating income as a percent of net sales will increase to between 9.0% and 12.0% for our fourth quarter ending June 30, 2022. The improvement in net sales and operating profitability is expected to be generated from continued growth from one of our newest customers, improved sales demand from our largest customer, improved sales mix and improved staffing levels which will increase our production capacities."
Interesting short article I ran across while looking for something else:
https://seekingalpha.com/article/4501310-tiny-titans-strategy
RDBX - What a wild swinger! It has been really jumping around the last couple weeks or so, also. The float is only 2.77M, so it doesn't take much.
I've been trading CSSE all morning. That's had some pretty good movement.
Nice rebound for HDSN this morning.
Misery loves company.....two money-losers unite.....CSSE + RDBX:
https://www.forbes.com/sites/schifrin/2022/05/11/chicken-soup-to-acquire-dvd-kiosk-merchant-redbox-in-375-million-deal-for-sagging-spac/?sh=2b628c1c5348
HDSN - I picked up a few more today, also. They issued their 10-Q tonight. Looks like their NOLs will be exhausted shortly.
Bmrboy, I'm sure you have lots of good company as far as being in a funk since pretty much everything seems to be getting marked down lately.
There was a whole lot of money-losing crap that was sold in the last few years between IPOs, SPACs, and opportunistic secondary offerings by companies whose stock prices had run up for no good reason. All that is currently being wrung out of the market, in my opinion. Unfortunately the stock prices of a lot of good companies are getting a haircut at the same time.
Anything and everything seems to be getting hit this morning. I've had quite a few standing buy orders execute. It's like a clearance sale.
HDSN - The first and fourth quarters are seasonally slow and the middle quarters are seasonally strong. They are guiding for in excess of $270M in revenues for 2022, and I believe they are being conservative.
HDSN - I don't remember hearing anything about sales slowing. Last year they had revenues of $193M. This year they are guiding for more than $270M in revenue. In the just-reported first quarter, revenues were $84M. The next two quarters are seasonally strongest, so I am guessing they are being pretty conservative with their sales guidance.
Would like to see their 10-Q to see where they stand on their NOLs.
HDSN - Retraced all the way back to the $8.20s. This is one tough market. I was surprised to see it in the $7.60s in the pre-market this morning.
HDSN - I bought some more this afternoon. On the CC they said their margins would trend down through the year, but it still looks like a good value to me. This just reported quarter was great and they even had a one-time charge in there. The next two quarters are seasonally strong. Against an $8 stock price, I think it is a groovy deal here.
Congrats on VLO. I had a lot of oil stock, but sold probably 95 percent a long time ago as prices were going up. I wish I would have bought a lot more around the time the futures went negative. They were pricing a lot of these companies as if it was the end.