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Vandal.....I assume you mean the relationship between Larry Harmer, Tom Petters, Petters Group Worldwide, and the fraud that Tom Petters did involving phony retail transactions, and his recent arrest.
Yeah, that is a concern especially in a company like Zagg that only has 3 Board of Directors, two of them who are not independent and, as such, have no desire to rock the boat in anyway.
However, there are no accusations that Larry Harmer is crooked. On the other hand, he has done a lot of great branding for products in the past.
Is this what you are talking about? Or, more correctly, just hinting at?
VV......I love the company and their plan, but I agree with you on two points.
1. They did discuss the "certainty" of the loan being repaid on the last CC Call. I highly doubt Brighton is going to make good on this no matter what Zagg says. I take what RP said about it all with a grain of salt as I've seen many larger companies where the CEO promises things on the CC call and they never happen. I care less about the loan being repaid than the empty promises I think this is going to end up being.
2. On the last interview he did a few weeks ago RP stated that the company passes all requirements for listing on the Nasdaq other than the $4 share price. Uh, that would be wrong. One thing that is REQUIRED is the majority of the Board of Directors needs to be INDEPENDENT (i.e. not an officer of the company). Zagg in 2008 only had TWO people on the BOD (CEO and CFO). That was a complete and utter joke. They added a third this year that is truly independent. They need at least two more before they could even submit an application for listing.
There is a fine line between excitement about a growing company and wanting to get the news out versus the hype OTC companies often generate to draw in unsuspecting investors. I don't think ZAGG is the latter (or else I'd be selling immediately), but I think RP skirts a fine line sometimes in his enthusiasm.
Dave
Wade...banks....the "illusion" of profits....
from an article in Forbes "While BofA has doubled its loan loss reserve, nonperforming assets -- loans that are no longer producing income as borrowers fall behind on payments -- have more than tripled, reflecting the weakening economy and the acquisition of troubled Countrywide and Merrill Lynch.
As a result, BofA's loan loss reserve now covers just 121% of its nonperforming loans -- down from 203% a year ago.
That means the bank has a thinning cushion just as the industry braces for rising losses on commercial and industrial loans, as well as continuing declines in residential real estate."
IMO, They aren't prepared for increasing defaults on commercial, credit card, and car loans. Unless unemployment rebounds (which is won't), the default rate on quality loans will increase further causing the cycle to continue. The real risk is then NO ONE will believe the banks when they report because they already padded their numbers this quarter with b.s. And when no one believes the numbers, panic continues.
Casinoroyale..ZAGG...you got to love the increased volume with the new 52 week highs. Not sure when this ride is going to end but I'm enjoying it!
Dave
Mike....I wonder why they added him in. I saw where he used to be the CFO of UTX so that's a nice connection. Not sure of the purpose here though.
any thoughts?
Cleverrox....the CEO and one of the other officers both said during the CC Call that they took the opportunity to "clean the books". Part of it was some infomercial they wrote off or something. Said it will help numbers in the future. Figured they'd do it now rather than stretch it out.
During a presentation awhile ago, CEO said that Wal-Mart "in store" sales weren't moving forward that fast because of the margin pressure Wal-Mart puts on suppliers. So who knows if that is one of the new Big Box retailers they are talking about.
It was a good CC call. I think the next 1-2 quarters will produce some interesting pr's.
ZAGG....Cleveroxx...I think Gross Margins will continue to slide down in 2009 after they sign the two new Big Box retailers. Wholesale margin can't be as good as their internet sales (which were affected by their discount coupons themselves). But it's a trade off---to get more exposure and sales they need to give up some money to middle man retailers.
It's interesting if nothing else. I have to admit I do like owning a stock that goes up in price in a down market.
Dave
Gilead23...ZAGG...I listened to the AGM CC call about a week ago. There were ZERO questions at the end. Just finished listening to the Zagg call. They had so many calls it lasted an hour and they ended it with people still on the line waiting to call in. The company is definitely starting to draw attention to what they are doing.
Dave
Cleverrox..ZAGG...I have to thank you for bringing it to my attention in early January. You brought it up in a post while discussing your losses for 2008 and used Zagg as an indicator of how a stock with good fundamentals still dropped in price. I did some quick DD on it and started buying in below $1. The company reminded me of FORD (a cell phone accessory company) of a few years ago that made a monstorous run in price.
I'm not sure myself if I should sell and look to get in lower (after earnings) or hold it for earnings with the idea that a strong outlook will provide more momentum.
Dave
ZAGG...Redchip Presentation today....taken from Vandalviewer posting on Yahoo: (I don't know him, just passing along what sounds like positive info---a bit of "hype" from company--but positive)...
"I wasn't able to make it today but another ZAGG shareholder that I am close with was at the conference. He gave the following highlights:
1. Not much discussion regarding specific sales or EPS numbers. RP consistently alluded to the incredible growth ZAGG is experiencing.
2. RP is projecting to get 12-15 million unique website visitors this year to ZAGG.com. They had 4 million in 2008.
3. ZAGG is signing a new international distributor almost every week. This continues to be the strongest growth area for ZAGG.
4. ZAGG currently has 40 mall carts and projects to have 80 by year end (not new information).
5. The Apple apps link on the ZAGG homepage is the beginning of what RP believes is going to be very big for ZAGG. RP cited a lot of stats regarding the number of apps that currently exist, the number of apps that people actually know about, and the number of new apps being created every day. RP said that the way the Apple apps store search engine works hurts the apps that people don't already know about as it puts the most downloaded at the top of any search results and ignores the unknown apps. ZAGG is planning to bring exposure to those unknown apps which represent 95+% of all apps that have been created to date. From what I was told, RP was extremely bullish about monetizing visitors to ZAGG's site through Apple apps promotion.
6. RP said many more accessories are coming for ZAGGaudio this year.
7. RP said they are currently working through their 3rd order of z.buds that they've received from the manufacturer and they continue to sell extremely well.
8. RP mentioned several times that ZAGG is going to be a billion dollar company (annual sales) in the future. Take that for what it's worth but it's good he is aiming high.
9. RP recently attended a Best Buy convention with 1,000 Best Buy employees and 30 of Best Buy's biggest/best vendors. ZAGG was one of those 30.
10. RP mentioned that they are moving into the healthcare space by creating shields for expensive medical equipment. RP said this was a good full-margin business for ZAGG.
I shouldn't increase my position any further at this point but my colleague who attended the meeting today is planning to buy more based on what he heard today."
ZAGG....52 week high today....This stock has made a heck of a run in 2009 so far. Not sure how much more life it has in it without a pullback. Earnings are the Monday after next and I think that will breathe new life into it or take it down a notch. Haven't decided if I should sell or hold on.
The company definitely has that combination of strong growth and a "sexy" but functional product that often makes for a killer of a stock movement (on hype if nothing else from momentum traders). Maybe some big trader will run the stock up into the stratosphere for me!!
I can dream :0)
ZAGG...1 cent off 52 week high....$1.59...nice movement up this year in such a weak market for stocks. They are giving 4 investor presentations this month before reporting numbers at the end of March.
ZAGG...record closing price...not bad on a crappy day in the market/in a recession/for a microcap stock.
Dave
Zagg....$1.15...flirting with a 52 week high! Nice to see a company being rewarded for outstanding growth. The pr by the company the other day is being well received. The company though has a ways to go before its a real grower (i.e. more products, more penetration into big box retailers, solidify margins....) But they are heading in the right direction IMO.
Dave
Mike..ZAGG...I think expectations by some people for 4th Q are a bit excessive (some people on Yahoo were throwing out numbers of $8-10M). I think a repeat of 3rd Q numbers would be wonderful. That would put them at roughly 3.5x 2007 revenue. For net income---I'm sure expenses for expansion hit them a bit.
The real interest comes in 2009 numbers. If the company can double revenue numbers then they are looking at doing $9-10M per quarter as it continue to ramp up. That puts the stock at the current $1 a good buy IMO.
Dave
EDAC...more insider buying....over 160K shares now purchased on the open market. The company just awarded stock options on December 4th (above the shares purchased), but insider just bought more yesterday on open market.
http://yahoo.brand.edgar-online.com/default.aspx?cik=772572
http://finance.yahoo.com/q/it?s=EDAC
EDAC.$1.80...more insider buys
Now insiders have bought 154K shares since November 1rst. That's 3% of outstanding shares. Not huge $$, but definitely shows that they believe in the company at these levels.
http://yahoo.brand.edgar-online.com/default.aspx?cik=772572
R59...FTK...I believe the S&P estimates for 2009 were for 92 cents/share (down 78 cents from their previous estimate). I agree that the worry over FTK's debt isn't such a concern since most of their debt isn't due for quite awhile and doesn't have any covenants on it.
Dave
2morrow...FTK...an insider bought 50K on Friday. Most of the officers can't buy for 6 months after their most recent sales due to "short-swing" rules for insiders. Last I checked FTK still has proprietary chemical products that should continue to have a solid growth rate for years to come.
When Obama passes his $700B stimulus package no one is going to be thinking oil is going to stay at $50. Besides, FTK is oriented more towards NG and we are predicted to have a hard winter.
FTK could easily go back to $10 and still be cheap IMO if the recession ends in late 2009.
EDAC..Insiders bought 2.8% of company shares since latest earnings report at the current prices up to $2.5/share. That'd be 135K shares. CEO bought 80K of them.
http://yahoo.brand.edgar-online.com/default.aspx?cik=772572
FTK...it's funny because institutions own 88% of company, insiders own 18% of company, and there are 12.3% shorts of the company. If this stock ever gets any good news there is going to be the short squeeze from hell on it IMO.
Of course, that assumes any good news ever! Maybe cold weather in the NE this winter (as predicted to be hard by Accuweather) will drive Nat Gas prices which help FTK move.
EDAC..insiders have bought 82K shares after 10Q came out. They like the long term prospects I guess. Not huge but CEO put up $150K buying his.
Form 4 listings:
http://yahoo.brand.edgar-online.com/default.aspx?cik=772572
FTK...anyone else take the opportunity to buy today under $4? Their debt level is high but their proprietary chemical business is very nice. If the companies new products do well the debt/ebitda ratio won't be a concern in another quarter or two (even if a slowdown in drilling, especially since one of their new products is focused towards oil drilling and they are pushing it in the Middle East). Then it'll be $8+ imo.
Mandjb..EDAC..CEO bought 30K shares the other day
http://yahoo.brand.edgar-online.com/DisplayFiling.aspx?TabIndex=2&FilingID=6236515&companyid=10452&ppu=%252fdefault.aspx%253fcik%253d772572
KIK.....EDAC did 20 cents a share on $12.7M in 4th Q last year. If the 787 gets going and Boeing gets going again on the 777 (and toss in what the F-35 contract is worth), EDAC will eventually get back to that revenue per quarter. Probably 3rd Q of next year or so. So I could see EDAC rising from the ashes again. They have a solid backlog (that keeps getting pushed off) and are investing more in equipment still.
It'd be nice to see management buy some shares at these prices (that is if they have any extra money!).
I could see EDAC back at $5-6 by the end of 2009.
D
Boeing settling strike----needs to go to vote still. May give a rebound to some of the aerospace contractor and supplier stocks in the next week or so. Most are near 52 week lows (like everything else!)
PCP, LMAI, TIE the bigger ones. SIF, KRSL, EDAC the smaller ones.
AFOP--earn today. Preannounced record sales for the quarter back in June.
http://biz.yahoo.com/bw/080625/20080625005306.html?.v=1
It'll be interesting to see what they can do (note: I don't own any of it, but my Uncle does).
Dave
iece.ob....sskillz1....the latest acquisition and now a hiring of a pr firm makes me think that IECE's management has high hopes for the future. The stock price is slowly moving up. Could get a nice pop on the next earnings report if it comes in strong with solid comments by management for future growth.
You still liking it? I'm a little concerned they may have paid a bit too much for the acquisition, but who really knows at this point.
Dave
SIF...SSKILLZ1....I too am suprised at the lack of interest in their numbers (which were really good). I think it's still indicative of lack of interest in aerospace---aerospace suppliers at the moment.
Dave
IECE.OB...2009 Proforma numbers of $70M (which starts October 1rst)....from today's announcement "With revenue of approximately $11,000,000, Val-U-Tech serves several leading customers in the military, medical and industrial markets. The combined companies will have 360 employees with proforma annualized revenues in fiscal year 2009, of approximately $70,000,000."
The company is expecting some really good growth starting to happen, even if the new acquisition is backed out of the equation.
Mike...EDAC...you said, "I added more shares of EDAC today"...I still like the company too (even after the haircut it received a month ago). I've been a buyer of more shares in the $6.40 range also. Long-term their prospects are really good. Short-term though there is just little buying interest. It'll be interesting to see what management says on the next quarterly report.
Dave
EDAC....MikeS97707.....It was good seeing in the 10K that EDAC has work on the Boeing 787 (Dreamliner) also. There may be delays to it and the F-35 contract, but long-term that's a lot of business that will eventually start coming their way. I've been a buyer this last week in the $6.40 range. I don't see the stock staying below $7 too much longer. I'm actually suprised more buyers haven't stepped up, but in reality it's always been an low-volume traded company.
Dave
EDAC Posts 20c/share.......
FARMINGTON, Conn., Feb. 26 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (Nasdaq: EDAC - News), a designer and manufacturer of tools, fixtures, jet engine components, injection molds and spindles, today reported results for the fourth quarter and the fiscal year of 2007.
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Sales for the fourth quarter of 2007 were $12,710,000 and net income was $984,000 or $0.20 per diluted share, versus sales of $10,975,000 and net income of $677,000 or $0.14 per diluted share for the fourth quarter of 2006. Income from operations increased to $1,632,000 in the fourth quarter of 2007 from $1,057,000 in the fourth quarter of 2006.
For the year ended December 29, 2007, sales were $50,019,000 and net income was $3,449,000 or $0.70 per diluted share versus sales of $38,329,000 and net income of $1,554,000 or $0.32 per diluted share for the year ended December 30, 2006.
Dominick A. Pagano, President and Chief Executive Officer, said, "This year is our fourth year of improving sales and operating profits. For the fourth quarter we posted our highest quarterly sales in the past eight years and our highest quarterly operating income in our history. Comparing the fourth quarter to the third quarter, our sales increased $185,000 and net income increased $119,000. For the year we have invested $4,300,000 in property, plant and equipment, including the acquisition of our new Aero Engine Components Repair business in December. This was made possible by strong cash flow provided by operating activities of over $7,600,000 which also provided funds to reduce debt. Total company backlog increased from $28.8 million at the end of fiscal 2006 to $30.1 million at December 29, 2007, and to $51.0 million at February 23, 2008. Approximately $18 million of this increase was from a new aerospace customer with deliveries scheduled from 2009 through 2012."
"Due to our aerospace customers changing their delivery schedules, shipments in the first and possibly second quarters of 2008 will be down compared to 2007 levels. We believe that this is a temporary condition. We are continuing our strategy of investing heavily in state-of-the-art machinery and equipment and plan on investing $3.7 to $5.0 million in 2008 primarily in machinery and equipment to increase our capabilities and capacity, and improve productivity in the aerospace product line."
Up 123% for the year. About half of that is "booked gains" and the other half is "paper profits" that I'm going to sell as soon as it hits long-term capital gains (through Spring).
The three stocks I did very well on were:
DO (Diamond Offshore---deep water driller. Thanks to 10Bagger and his recommendation towards that sector.)
JADE (took a risk and went big at the 52 week bottom and it paid off very well yesterday!).
and my best (and most profitable pick since it comprises a large portion of my portfolio) was/is EDAC. It's why I'm glad to see Littlefish doing so well in AYSI because when he was posting about selling EDAC at $4 I was the big buyer! (I tease him about it). I still like it for another 50% gain in 2008 (after 4th Q and then 1rst Q #'s are released).
Ones I'm looking at (but don't own) for 2008:
AYSI---yeah, I made some money on it this year but should have loaded up more and held (and Littlefish was personally prodding me too. My New Year resolution is listen more to those wiser than I!). If anyone gets scared of the market and starts to sell it hard I'll be waiting!
ALY--an old favorite of mine. I made great money on them a couple years ago. The stock is beaten down but if Natural Gas can rally some than they will bounce back. The risk factor for the current price is pretty low since they have a lot of capital equipment coming on line, especially down in Argentina in the next 9 months and a couple of new acquisitions.
NTWK--risky play, but if Pakistan settles down than it's a nice stock.
JADE---I took my profits in it already, but may come back in if it goes lower.
Dave
TTIL...$2.25...has $1.92 in cash. They did .05 cents net last quarter (though most of that was from interest/investment on the cash). Revenue has stabilized. Company restructured last year. Definitely out of favor, but may be a good buy long-term. Analyst expect earnings of 30 cents/share for 2008.
Note: I don't own it. Used to follow it when it many years ago (during telecom boom).
http://biz.yahoo.com/pz/071114/131401.html
Dave
AEY earnings report $17.3M/16cents....
ADDvantage Technologies Reports Results for Fiscal Fourth Quarter and Full Year 2007
Monday December 17, 8:00 am ET
Record Results for FY07 -- Revenue of $65.6 Million and Net Income Per Share of $0.64
BROKEN ARROW, Okla., Dec. 17, 2007 (PRIME NEWSWIRE) -- ADDvantage Technologies Group, Inc. (Nasdaq:AEY) (the ``Company'') today announced financial results for its fiscal fourth quarter and year ended September 30, 2007.
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For the three month period ended September 30, 2007, revenue increased 42% to $17.3 million, compared to $12.2 million in the fourth quarter of fiscal 2006. The increase in revenue is primarily attributable to sales of our digital converter boxes generating incremental revenues of approximately $2.1 million and increased sales totaling approximately $2.8 million from five large cable multiple system operators (``MSOs'') that are continuing to upgrade their systems.
Net income attributable to common stockholders in the fourth quarter of 2007 increased 220% to $1.6 million or $0.16 per diluted share, compared to $0.5 million, or $0.05 per diluted share for the same period last year. The increase in earnings came from increased revenues during the fourth quarter of 2007 combined with the absence of the charges that negatively affected earnings during the fourth quarter of 2006. During the fourth quarter of fiscal year 2006, the Company recorded charges totaling approximately $0.7 million to write down assets and absorb charges for uncollectable receivables.
For the fiscal year ended September 30, 2007, revenue totaled $65.6 million, compared to $52.5 million for fiscal 2006, representing an increase of 25%. The increase came from incremental growth from sales of our digital converter box product line of $5.4 million as well as increased sales of other products to several large MSOs that are performing equipment upgrades to expand the bandwidth of their communication signals.
Net income attributable to common stockholders for the fiscal year was $6.6 million, or $0.64 per diluted share, compared to net income of $4.0 million, or $0.39 per diluted share, for the previous fiscal year. The increase in earnings was attributable to the Company's growth in revenues.
Ken Chymiak, ADDvantage Technologies Group President and CEO, commented, ``Fiscal 2007 was an exciting year for ADDvantage. We achieved some significant objectives over the past twelve months with the successful integration of several acquisitions, achievement of sustained year-over-year revenue and net income growth, as well as the continued expansion of the range of products and services we provide and the geographic regions in which we operate. In addition to our success over the past year, in November we redeemed all outstanding Series B 7% Cumulative Preferred Stock, in order to eliminate the payment of dividends related to that class of stock, which we believe will increase long-term value for our shareholders.''
Mr. Chymiak added, ``In the coming year, we plan to build upon our solid foundation of customers and OEM suppliers, both of which are key components of our growth strategy, and we are confident in our ability to continue the expansion of our business. Over the past several years, the cable TV industry has been consistently upgrading its systems. With the growing popularity of services such as high-speed Internet and high definition television in both the U.S. and Latin American markets, the need for more bandwidth and new products will, we believe, continue to keep the products we sell in high demand. With our continued strategy for stocking a broad base and depth of inventory (''On Hand. On Demand.``) and our quality service centers strategically located across the U.S., ADDvantage is well equipped to meet the growing product demands from MSO's that are continually working to upgrade their current systems.''
Hweb2...AEY...They just had to restate part of 2006's annual report due to cash flow numbers
http://biz.yahoo.com/e/071203/aey8-k.html
So I think that slowed the auditors down to finish that first. I figure they probably could release 2007 numbers late next week, but I like the idea of a Monday morning release much better.
I'm figuring on seeing a "pop" over $7 for certain. Not sure if it'll hold though in this volatile market.
Dave
R59..AEY...The company is at releasing numbers on a day & time that will give them maximum exposure.
Dave
AEY..$5.70..Anyone like it at this price also? I'm starting to look into nibbling here at current price.
I like the potential for results for the Q ending Sept due to:
" The FCC granted several waivers on June 29, 2007, and continues to review waiver requests. For the quarter ending September 30, 2007, we have received several purchase orders from domestic cable companies that have been granted FCC waivers. As such, we expect there will continue to be a domestic market for our legacy boxes until the FCC waivers expire"
Also:
"This has been a very successful time for ADDvantage, and we are optimistic that we can continue this momentum through the remainder of the fourth quarter and into fiscal 2008"
I realize that the 4th Q is seasonally a slower time, but I could easily see the company doing 15 cents/share which should give the stock a nice pop.
Any thoughts?
Dave
SLB $100 puts up 30x today! They were 5 cents yesterday. With options closing today and SLB at $98.50 that's 30x in one day! Doubt there were many buyers yesterday using it as a hedge.
Dave