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FTSI Volume has been encouraging the last two days. It will be interesting to see how it trades during the last hour today.
Nice bid/ask spread. Feels like trading has ground to a halt until earnings announcement. I'm planning on holding my full position into earnings, but not really optimistic about sequential revenue growth given the only recent order PR was the $.8 million Namibia order which doesn't really move the needle. We'll see.
FTSI Earnings after market close today. Hopefully cause for a rally.
FHRT--hard to take a company seriously with that symbol
FTSI finally finding its footing?
I agree with you Myth. If there were an intention to reinvest proceeds and restart the Company, there's no reason not to communicate that as a possibility. Why be sneaky about it? I think Mary is just trying to undermine confidence in the liquidation plan to depress share price.
FTSI I keep averaging down but way under water at a 12.93 cost. If the theory is true that short selling is coming from lock up share owners who will cover when the lock up expires, then the stock might spike on the lock up expiration date. On the other hand, if lock up share owners know a good quarter will be announced, why forego upside on those shares with a short hedge? The decline is so extreme you have to wonder if some bad news has leaked.
Dave--Today's close is just more evidence that the price floating around doesn't mean much. I have mixed feelings about getting into the tower business as it's a much bigger pond but they're a relatively much smaller fish. That has to be a fiercely competitive business and projecting costs to install in remote locations can probably get tricky pretty quickly which increases the risk of low margins or even losses. Weather among other factors can wreak havoc. I'm guessing they'll only compete for smaller, remote tower installs that aren't meaningful to bigger players. That said, additional revenue is definitely a positive at this point and maybe they'll build a significant and profitable additional business out of it.
While it's good to see the share price drift up recently, there has been so little volume it doesn't feel meaningful.
Doesn't today's filing indicate they still have 527,000 shares left?
FTSI Now averaged down to 13.30 but way over my skis. If it bounces some I will pare down to smaller position.
FTSI--Keep averaging down my position now at 13.56. Hope to see a pop from these new lows.
IVFH .70--My buys at .80 and in the .70's now have me underwater. Skillz, at what price would you consider reentry?
Seems to be in a low volume, range bound rut pending next earnings report or announcement of a new large order. The longs and shorts are holding but not raising, waiting for the company to show its next hand.
NRZ Good prediction on the secondary offering Cliff announced after market yesterday. They also confirmed their .50 quarterly dividend which may account for the muted market reaction to the secondary offering news.
NRZ--Anyone still holding? Hit 52 week high on this down market day. Much of their book is in Mortgage Servicing Rights which appreciate in value as rates rise and refinancings decline.
IVFH--Bought more at .80 a few weeks ago and getting some fills today at .77. The food and beverage sector is an extremely hot M&A vertical where both strategics and PE funds are paying very high valuations. Unfortunately, I don't think the CEO would be an opportunistic seller as this seems to be his baby.
If they announce a .003 dividend I'm guessing the share price increases to between .0055--.006. On the ex-dividend date the price would drop to .0025--.003. I think that would be another attractive entry point as I see at least .005 in further distributions.
Just a WAG but I'm thinking the first dividend will be announced this week.
Some early volume aggressively beating down the share price. Sure feels like shorts at work again.
They did have to decrease their pricing on their primary unit to be competitive. The only reason I can think for a short position is that the company cost structure may prevent profitability until very high revenue levels. California isn't the cheapest place to operate a business.
Regarding yesterday's PR does anyone have a sense of the price per unit to estimate revenues from the order? I believe this was their low cost unit.
Myth--Thanks for putting a finer point on the value of a filing shell distanced from liabilities. More is better. I was primarily trying to make the point to Tony that they won't be able to "sell" their tax loss carry forwards.
Price ticking up today which is great to see.
I was recalling a link you found online a few months back that had filing shells for sale in that range.
Tony--
I think they're making sure they can retain the tax losses for the purpose of using them to offset at least some of the gain from the asset sale. After that, I don't think they have any other use for them nor can they "sell" them because they're lost on a change of control. No one is going to drop assets in or merge in a company with valuable assets without assuming control which would eliminate the tax losses. The only residual value is I think is their SEC filing status which I think could be worth around $175,000 based on an internet search.
Keep in mind that the tax losses disappear if there's a change of control transaction so there's no way to have a third party assume them.
It might be shorts or it could be a long building a position who dumps a few shares at market close to mask the strong day today. Seems odd that there was a strong bid all day that disappeared just before the close. Maybe the buyer just pulled his bid hoping for a pullback so he can start bidding tomorrow at a lower price.
Really strong action today. Great to see.
Of course, POLA up on a down market day. Short activity seems to undermine correlation with broader market.
CBAI .0044 Think this is a great arbitrage opportunity. They just closed on the sale of substantially all assets to third party for $15.5 million and retained $1.2 million in cash. $3 million is in escrow for two years to cover contingent claims that might arise although there are no disclosed lawsuits pending nor did plaintiff lawyers contest the asset sale so seems clean so far.
There are 1.273 billion shares outstanding so including the escrow money they're holding .013 per share in cash. They'll have some transaction costs for the asset sale and some wind up costs for closing the company down. They'll also pay tax on the asset sale proceeds although they have some applicable tax loss carry forwards. I don't know their tax basis in the assets or the applicable tax rate (20%?).
They've already announced an initial special dividend of between .0025 and .0035 within the next 90 days. Assuming a purchase of shares at .0045 and a .0030 initial special dividend, you have .0015 per share at risk after the dividend and the prospect of receiving at least another .0075 in dividends before it winds up after the escrow period expires in two years.
CBAI is controlled by 30% owner Red Oak, an SEC registered investment advisor who took their position and control of the Board as a white knight a few years ago. They have been very straight up throughout their entire involvement, so I think the risk of fraud etc. is very small. Seems like low risk with the prospect of a high return for patient money. The risk is that some unknown (and, as yet, undisclosed) claim/lawsuit/contingency etc. ends up draining cash and lowering the cash return.
I have no real idea but it sure feels like shorting is continuing to affect the price action. The alternative is that buyers are bailing which seems inconsistent with the outlook. If you're long because you believed in the potential would you give up now?
Is it just my small/micro cap portfolio languishing today or has the suspension of the trade war caused a rotation out of small caps back to multinational large caps?
POLA up to 52 week high on huge volume. Short squeeze in full play.
Looks like short squeeze is in full play
Did everyone see announcement that deal actually closed yesterday? Escrow is $3 million and first distribution within 90 days.
The deal closed!
POLA Surging today on high volume following recent Q1 release showing modest sequential increase in sales but impressive backlog jump. The short interest rose 30,000 shares in the least report, so I'm guessing shorts now having second thoughts about coming quarters given backlog increase, ramping sales from AT&T and a reinvigorated Verizon and first international and military sales. Admittedly, this has been a "late bloomer" but there now seems to be sales traction and the prospect for continuing sequential sales increases in coming Qs. When healthy earnings can be generated isn't clear, but they have significant operating leverage which should improve margins and profitability as revenues ramp. For now, I think healthy sequential revenue increases will be sufficient to drive the share price especially since they burn little cash and have a pristine balance sheet.
IVFH Bought a bunch at .80 yesterday so will see how that goes.
I'm encouraged the stock held up yesterday. Q1 revs weren't great but backlog was encouraging. I think backlog makes it a more dangerous short play now so see short shares declining materially this Q which is good underpinning for the share price.
Since their path to $10 million in quarterly revenue, good margins and impressive profitability is taking longer than I hoped, I think the biggest risk is that the overall market tanks before they get there and the share price won't reflect their success.
POLA reports after the bell. We'll see if they can build on improving sales last Q.