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Indonesia update?
Haven't had a chance to go through the release -- did they clarify the situation with the factory site in Indonesia? Are they still building it? Funding it from cash flow? Any expected date of completion?
Nice work, thanks.
Updating financials?
Swick, are you going to update the financials on this page soon?
Two ways of hedging AAPL (and also RIMM): http://www.gurufocus.com/news/205497/two-ways-of-hedging-apple-and-research-in-motion
Two ways of hedging RIMM (and Apple): http://www.gurufocus.com/news/205497/two-ways-of-hedging-apple-and-research-in-motion
War increases demand for iron ore, no?
Lots of military equipment made out of steel.
Good to hear from you, LF.
Not too much loss of life here, thankfully, but a big mess. No power in most of NJ, traffic lights out, cell service spotty, etc. Only places open within several towns of me on Tuesday were a Colombian restaurant and two Dunkin Donuts shops, all running on generators. Haven't seen the news footage yet, but am guessing the barrier island coastal towns are all hammered.
Power is out in most of downtown Manhattan, too. Midtown is in good shape though, which is where I am now, in a hotel. No trouble catching a cab here tonight.
They could probably get financing if
AYSI owned the tech, instead of paying royalties on it to Gene's holding company.
The other issue, if memory serves,
was that Indonesia had some sort of law that required them to develop the site within a certain period after buying the land. Can you ask them to clarify that too, as well as the consequences if they don't comply (could they lose the land?)?
Presumably, if there isn't a deadline of that sort, then AYSI could just keep retaining profits from its business and eventually build out the site when they've saved enough money. Granted, their margins would probably remain under pressure without the low cost labor, but that would be one path.
Quick summary of the last few months?
Last time I checked in on JBII it was trading around a buck-40 or so. What's been happening over the last few months?
Caterpillar sees China stimulus helping in 2013
http://www.reuters.com/article/2012/09/08/us-china-stimulus-caterpillar-idUSBRE88701Q20120908
Volume of iron ore more important than price
The two are related, of course, but it's worth bearing in mind the difference. For a commodity producer, price and volume of the commodity are both key. But for a picks & shovels play, the volume is the key. That point as made a few years ago by the CEO of a conveyor belt company, as I noted in a blog post at the time ( http://thehackensack.blogspot.com/2008/12/alloy-steels-annual-report.html ):
Ernst & Young disagreed with that assessment last year: http://www.ey.com/AU/en/Newsroom/News-releases/Best-in-the-west--2011s-top-Western-Australian-entrepreneurs-named
JBII must be rocking with oil this high.
Been away from the board for a few months, what's the latest? I imagine with oil going through the roof, a company that can produce fuel from thrown-away plastic bottles must be cleaning up.
Have they been breaking out its revenue?
I haven't read the 10-Ks closely recently.
New to REPR, so a couple of questions:
1) Why the double digit drop today?
2) What profit or loss did the company post in the most recent quarter?
TIA.
$6,503,952?
Wow, that's a big fat loss. Was it profitable the previous quarter?
Who is in charge of updating it?
Thanks. Wouldn't it be helpful to have a table here summarizing JBII's quarterly results?
I'm having trouble finding this info on the company's "financials" tab ( http://ih.advfn.com/p.php?pid=financials&symbol=JBII ). What was JBII's profit or loss last quarter?
Quick update
I emailed Barry last night to follow up, he said he would discuss the questions with the board and let me know Friday if they'd be answering them.
Again, it could be worse.
Instead of posting a "fat" ~3 cent loss, AYSI could have posted a much fatter 8 cent loss. And it could have a bunch of shareholder lawsuits filed against it. But it doesn't. And AYSI could also have been financing itself with dilutive PIPEs over the last couple of years, but it hasn't.
Now, if the company had multiple shareholder lawsuits against it, was perennially unprofitable, and repeatedly diluted its shareholders, I might agree with your "POS" designation. But none of that applies to AYSI.
Got an email back from Barry,
Saying to send over questions and he'd discuss with Gene.
He also said he hoped to publish annual results "much sooner" than last year.
Below is the list of questions I sent him.
Shareholder Questions for AYSI Management, 4 November 2011
1) At the beginning of the year, the company announced the hiring of a new CEO, and the addition of new board members, including a new chairman. That chairman, CEO, and an additional director have since departed. Can you offer any elaboration on why they departed, particularly after so little time? Is the company looking for new CEO, chairman or director candidates currently, or is it content with the current management/board structure?
2) In responses to shareholder questions in August of last year, the company said,
Questions for Gene and Barry?
This is a long shot -- they might simply not respond to my email -- but I'm planning to email them later today, to ask some questions for a follow-up article I'm going to submit to Seeking Alpha, mentioning AYSI's Q3 results.
That article will mention BHP and other companies that have used AYSI's products in the past, so, if Seeking Alpha publishes it, it will be seen by some shareholders in those other companies via Yahoo! Finance, CNN Finance, Stocktwits, etc. I'll let Gene and Barry know that, and they can decide whether they want to participate or not.
So leave whatever questions you have as replies to this comment. That way we can get them all in one place.
Note: If Gene and Barry decide to respond to these questions, and the future ends up different from their answers, take it up with them, not me. I am just going to report what they say.
It's possible, I suppose.
They had acquired the land by February,
When they published this chairman's letter: http://alloysteel.net/media/pdf/aysi-chairmans-letter-and-2010-accounts.pdf
I think they bought it in installments over the course of 2010. So, the increase in property, plant & equipment probably refers to something else.
I saw that.
That type of quarter certainly won't boost its multiple.
Woodhouse gave positive guidance for the rest of the year, but, if memory serves, he also gave positive guidance last quarter.
Holding here.
China is still an issue, medium term,
But that shouldn't effect AYSI's Qs 4 and 1. So yeah, they have the macro trend wind at their backs. What they've been able to do with it, hopefully, we'll see soon.
What you've described is the current status quo:
Lumpy earnings, a tiny P/E, etc. I don't think it will require a buyout to change that, though. I think it will require two consecutive quarters of earnings in the ~10 cent range for the company to get a higher multiple.
I'm afraid I disagree.
- The FINRA investigation was announced in early 2010, and since neither the company nor FINRA have announced anything about it in over a year and a half, it appears to be concluded.
- I don't see how having one shareholder lawsuit would be better than having no shareholder lawsuits. I think the optimal number of shareholder lawsuits to have would be zero.
- Given that FINRA made its info request to AYSI about a year before the recently departed chairman ever joined AYSI, I doubt his departure had anything to do with it.
- "Pump" pieces generally don't include this as a header, "New Organizational Structure Further Unravels", which that Seeking Alpha article included. That was, more accurately, an objective, warts-and-all assessment of the current state of the company.
Yes, it could be worse.
It could be losing money, financing itself through dilutive PIPEs, in addition to being the subject of multiple shareholder lawsuits.
Instead, AYSI is (as of its last reported earnings) profitable, has plenty of cash in the bank, has financed itself largely through its own cash flow, has not diluted its shareholders, and is not the subject of multiple lawsuits by shareholders claiming they were duped.
Buying some at .75
Limit order still open.
First time I've bought since it was in the .40s last year.
Well, it could be worse.
Imagine if the company were the target of multiple shareholder lawsuits? That would be discouraging. But thankfully, that's not the case with AYSI.
We just have a founder/CEO/majority owner who was recognized by a Ernst & Young as a great entrepreneur, but who apparently has difficulty handing over the reins to others.
I am curious to see what the company's numbers look like in its fiscal Qs 1 & 4. An Ernst & Young entrepreneur of the year working with a macro trend wind at his back ought to be able to post some decent numbers. If he isn't, I would be interested to know why.
Thanks for the update.
At least we know he's still with the company.
If you thought that was crazy...
I haven't added to my position since this was at .45 last year. If it drops below .80 I might be a buyer again though.
It's been there before.
I wouldn't read to much into it. The earnings report will be what it will be. My guess is that it will be decent though. I base that guess on three factors:
- The company gave positive guidance in its last report.
- The iron mining industry is still booming and miners are increasing capex.
- The company announced the board resignations before the earnings release. If the earnings are going to be bad, you'd figure they'd announce the resignations afterwords, so the board members could share the blame, and the company could make a show of changing course by getting rid of them.
Just a guess though.
AYSI, or the market in general?
Which were you referring to?
So far so good then...
Global macro picture isn't encouraging though.
I doubt it will have much impact on AYSI's quarterly results this fiscal year, due to lag times, but Germany posting economic growth of 0.1% last quarter was inauspicious, particularly if you consider that China is one of its biggest export markets.
It would be ironic if AYSI ends up posting record numbers in the second half of its fiscal 2011, only for the stock to get hammered by fears of a global recession in the next several months.