Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Nelson, I'm out of town, so........
I did read something the other day, though. Accredited investors are supposed to be able to make trades on the expert market, but the mainstream brokers aren't even allowing that to happen. You will definitely want to triple check this, but I read it somewhere.
That "expert market" status the SEC put lots of otc stocks into really screwed the current holders.
I'm in good company then! Not to brag, but I currently have 22 stocks in an Ameritrade account that only have CUSIP numbers! They are all awaiting their time to be judged worthless, and then I will get some more happy messages to that effect!
I think you really need a good sense of humor in this business. Everyone makes bad trades/investments. It's going to happen. Hopefully each one of those CUSIP numbers, representing a bad investment, was a bargain-basement stock market tuition payment.
This is how you know you're a successful investor:
02/01/2024 15:11:07 Removal of Worthless Securities (386617104)
02/01/2024 15:36:06 Removal of Worthless Securities (417119104)
02/01/2024 16:20:16 Removal of Worthless Securities (025929209)
AEY - That's pretty lame. A real bummer for anyone expecting a turnaround.
AEY - It looks as if some of the chosen few got the news earlier than the rest of us. It opened down 42 cents today. That 8-K came out about a half hour ago.
AEY - Bankruptcy:
Item 1.03. Bankruptcy or Receivership
On January 31, 2024, ADDvantage Technologies Group, Inc. (the “Company”) and each of its subsidiaries, Fulton Technologies, Inc. (“Fulton”), Nave Communications Company (“Nave”), and ADDvantage Triton, LLC (“Triton,” and together with Fulton and Nave, the “Subsidiaries,” and each a “Subsidiary”), filed a voluntary petition for relief under the provisions of Chapter 7 of Title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Eastern District of Texas, Sherman Division (the “Bankruptcy Court”), (collectively, the “Bankruptcy Filings”). The Company and the Subsidiaries ceased operations on January 26, 2024. The following are the case numbers for the Company’s and the Subsidiaries’ Bankruptcy Filings:
•Case No. 24-40225 – ADDvantage Technologies Group, Inc.
•Case No. 24-40226 – Fulton Technologies, Inc.
•Case No. 24-40227 – Nave Communications Company
•Case No. 24-40228 – ADDvantage Triton LLC
A Chapter 7 trustee will be appointed by the US Trustee's Office of the Bankruptcy Court, and the trustee will assume control over the assets and liabilities of the Company and the Subsidiaries, effectively eliminating the authority and powers of the Board of Directors of the Company and each Subsidiary and their respective executive officers to act on behalf of their behalf. The assets of the Company and the Subsidiaries will be liquidated and claims paid in accordance with the Bankruptcy Code.
Item 2.04. Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
The commencement of the Chapter 7 Cases described in Item 1.03 of this Current Report on Form 8-K constitutes an event of default under certain of the Company’s debt instruments, which results in acceleration of the Company’s and the Subsidiaries’ obligations under such debt instruments.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Concurrent with the Bankruptcy Filing, Joseph E. Hart, the Company’s Chief Executive Officer and President; and Michael Ramke, the Company’s Interim Chief Financial Officer, resigned as executive officers of the Company. As of January 31, 2024, neither the Company nor any of the Subsidiaries have officers, consultants or employees.
Concurrent with the Bankruptcy Filing, directors David E. Chymiak, Joseph E. Hart, Timothy S. Harden, James C. McGill, John M. Shelnutt, and David W. Sparkman have effectively resigned as members of the Company’s Board of Directors. Neither the Company nor any of the Subsidiaries currently have members of their respective Boards of Directors.
ATGE - Closed this thing out. Really thought it would be rising into the close, but it didn't happen. I surely don't want to hold onto it with the earnings report coming out after the close.
ATGE $48.44 - $10.19 Short piece this morning. Stock was down as far $43.77 today. Company issued a PR today stating that they are moving up their earnings announcement to today after the close instead of Feb 1. I'm long some of this since I think a lot of the shorts are going to be covering, because they have no idea what's going to come out of the earnings PR and the conference call this afternoon. I think this could continue to move up into the close. Definitely a risky trade, though.
AATC - jtomm, I agree that for an investor with a long-term outlook, the listing probably isn't going to matter that much in the end. A business is worth what a business is worth to another company looking to acquire it. The cost savings and the time saved by management not having to deal with all the regulatory stuff should add value to the company.
In the shorter term, though, I really believe there is a stigma attached with trading on the otc market versus having a Nasdaq or NYSE listing. I think overall, otc stocks will continue to receive discounted valuations relative to listed stocks. That's the reason why you see these crazy multi-hundred percent premiums paid by acquirers of otc stocks sometimes.
Plus you usually have lower volume and wider spreads. Many brokers also charge commissions on otc trades whereas the listed trades are free. Unfortunately just more reasons for investors to stay away.
The SEC really made a mess of things when they tried to save everyone and instituted this expert market for many otc stocks that weren't current with their disclosures. After seeing many otc stock prices get crushed because of this, many investors are even more wary of purchasing shares in otc companies. I also think a lot of investors are confused with the new and old otc market designations. Let's see you have the OTCQX, expert market, OTCBB, grey market, OTCQB, and pink sheets! Are they trying to make it confusing?
I think looking at it from a Warren Buffett point of view, the listing probably isn't going to matter much in the long run. In the short term, though, I'm wary.
AATC - This was a great bargain down in the 3s as late as last April with a dividend yield of around 14 percent. The move to the otc market really spooked investors. You have to wonder, though, if they kept their listing, how high the share price might be now with all the good news released recently.
ESP - You gotta love companies like this with the small share counts. They only have 2.7M shares outstanding, so every 27k in earnings equals a penny in EPS. Last year's revenue was $35.6M, so this company passes the Great Kozuh's dilution test!
HRTG - Heritage Insurance price target raised by $1 at JMP Securities:
The Fly - Jan 17 06:50 EDT
JMP Securities analyst Matthew Carletti raised the firm's price target on Heritage Insurance to $7 from $6 and keeps an Outperform rating on the shares. The firm expects Q4 results to be highlighted by strong mark-to-market tailwinds on investment portfolios and low catastrophe loss activity that will positively impact reported EPS and book value for many, the analyst tells investors in a research note.
Also, lots of insurers hitting 52-week highs today including:
ACIC
AEG
ALL
CB
CRBG
PGR
PRI
TRV
MNTS $.98 -.27, ominous sounding 8-k issued this morning. I don't know if I've ever seen an uglier income statement.
Item 8.01 Other Events.
Business Update
Starting on January 10, 2024, Momentus Inc. (the “Company” or “Momentus”) notified customers and certain regulatory agencies that the Company had changed its plans and did not plan to support the launch of their payloads aboard the Vigoride 7 Orbital Service Vehicle planned for launch on the SpaceX Transporter 10 mission currently targeted for March 1, 2024. The notice was provided due to the Company’s inability to support continuing operations for the expected launch date as a result of the Company’s limited liquidity and cash balance as of the time of the notice to customers. The Company continues to pursue opportunities to raise additional capital to allow for its continuing operations and the execution of its business plan but does not have definitive commitments at this time.
SDA
On January 5, 2024, the Company was notified by the Space Development Agency (SDA) that the Company was not selected for funding for the Tranche 2 Tracking Layer. As noted during the Company’s third quarter 2023 earnings call and the accompanying press release filed with the Securities and Exchange Commission on a Current Report on Form 8-K on November 14, 2023, Momentus had submitted a bid to the SDA to produce 18 satellites for missile tracking and fire control as part of this proposal.
Liquidity
The Company has not generated sufficient revenues to provide cash flows that enable the Company to finance its operations internally and the Company’s financial position and operating results raise substantial doubt about the Company’s ability to continue as a going concern. The Company has taken and continues to take proactive steps with respect to managing its cash burn rate and extending its cash runway while the Company continues exploring new business opportunities and working to raise additional capital. At the end of the fourth quarter of 2023, the Company reduced its headcount of full-time employees and contractors by approximately 20% to reduce its cash burn rate while retaining the talent it needs to execute on its key near-term initiatives. Nevertheless, the Company’s ability to continue to fund operations for the next few weeks and months will be dependent on its ability to raise equity capital or engage in a strategic transaction.
Strategic Process
As part of the evaluation of strategic alternatives, Momentus has conducted discussions with multiple potential strategic partners over the past few months. Those discussions have not resulted in any definitive agreements. The Company continues to engage in discussions and attempts to position itself to be able to quickly capitalize on any potential opportunities with interested parties should they arise and to evaluate all viable strategic options. However, if the Company is unable to raise sufficient capital to provide a bridge to full commercial production at a profit, the Company’s operations could be further curtailed or ceased.
The world has gone utterly mad! (eom)
KEQU - Up nicely since your article posted. Speaking of wine:
KEQU - Congratulations, gilead. You have officially been declared a discerning analyst:
https://seekingalpha.com/article/4661020-draft-rare-stock-picks-december-2023-discerning-analysts
MIND, MINDP - They officially decided to defer the preferred dividend for their fourth quarter. They pretty much said they were going to do this in their Dec 13 earnings press release. The preferred holders now have the right to appoint two directors to the board since they have missed six preferred payments. I thought they had to miss six in a row, but apparently just six in total.
GLGI - Q2 last year wasn't very good, so they don't need much to look better! I'm a little underwater currently, buying before I read the cc transcript. I wouldn't mind picking some more up opportunistically.
GLGI - I own this one, also. I'm not sure how good Q2 is going to be, but management sounds pretty confident about the full year. Here's a couple snippets from the latest conference call in chronological order:
UUU - $1.85 + .31, nice recovery from the low of $1.27 on Dec 15. That was a strange selloff. It seemed like someone was dumping a large position that day for some unknown reason.
BMRA - Closed out this short at the end of the day. Feels like I was trying to swim against the tide in this buoyant market.
BMRA - Definitely risky. That's why I covered the short yesterday in AH, and re-shorted this morning. This one has a pretty good history of jumping on PRs and then falling on its face. Last annual profit was 2013. It surely has the ability to spike up, though, like it did yesterday.
BMRA $1.31 -.34, Nice move to get out on the pop yesterday. I wouldn't be surprised to see it get back down to around a buck.
MIND - The earnings cc was interesting. One of their institutional investors was really letting them have it. This is one of the things he told management on the call:
MIND - Another nice order announced:
MIND Technology Receives Source Controller Order
PR Newswire - Dec 19 07:00 EDT
THE WOODLANDS, Texas, Dec. 19, 2023 /PRNewswire/ -- MIND Technology, Inc. ("MIND" or the "Company") (Nasdaq: MIND) announced today that its Seamap unit has received an order for multiple GunLink source controllers totaling approximately $10.2 million. This order is pursuant to the previously disclosed framework supply agreement with a major international seismic contractor.
Mark Welker, Vice President of MIND and Seamap Managing Director, stated, "This is, the largest single order in Seamap's history and is another indication of the broad acceptance of our technology. When combined with our existing backlog, Semap now has a committed book of business totaling almost $48 million as we move into the fourth quarter of this fiscal year and into next fiscal year. We believe this will allow us to be more efficient in our procurement and production operations."
About MIND Technology
MIND Technology, Inc. provides technology to the oceanographic, hydrographic, defense, seismic and security industries. Headquartered in The Woodlands, Texas, MIND has a global presence with key operating locations in the United States, Singapore, Malaysia, and the United Kingdom. Its Seamap unit, designs, manufactures, and sells specialized, high performance, marine exploration and survey equipment.
BMRA - Wild ride with this one today. It slid down to $1.26 in the morning and then rocketed up to $2.13 in the afternoon, and closed at $1.65. I came within about 10 cents of getting stopped out. I covered my short in AH, but I will be looking to re-short tomorrow.
BMRA - $1.51 +.52, shorted some this morning. Their test doesn't seem to be novel. It already seems to be widely available.
KEQU - Nice to see insider buying at these price levels.
https://www.sec.gov/Archives/edgar/data/55529/000152220923000004/xslF345X05/wk-form4_1702648500.xml
UUU - Scooping up a bunch of this today. Smells like someone got caught with a hooker in a hotel room and needs some bail money.
CTHR - A good deal of insider buying the last month or so. Maybe things aren't quite as bad as they seem.
MINDP - This is interesting from the 10-K:
UUU - That short turned out well for you. I was too chicken to short it.
The company has tangible book value of about $2.29 a share. Last quarter's loss had some stuff that sounded one-timerish, and there's this from the latest 10-Q that could at some point be a catalyst for a low-float spike:
MINDP $6.85 - $5.50, the preferred holders got their heads handed to them on this from the earnings PR:
FEIM - Definitely. What I was alluding to was the bolded portion of the quote:
FEIM - I'm with you on this one. Things seem to be lining up very nicely for future quarters. Those contract announcements of $25M, $19M, and $9M were all within a two-week period! Those $53M in orders are more than last year's total revenue of $40M. It was trading in the 7s a month ago, so like you said, that might limit the upward price action.
And it sounds like there might be more orders to come. This from the CEO from last quarter's earnings PR:
DRCT - Seems like the company should be putting out a rebuttal, and maybe it bounces at that point. I don't own a share presently.
DRCT $8.32 -$2.58, anyone getting back in this thing?
CSPI - Kinda comical that they highlighted the dollar amount of their backlog in their first and second quarter earnings reports, but decided to omit the dollar amount in their third quarter report! You gotta wonder if the only reason they mentioned it in this report is because they knew they would be fielding the question on the conference call.
DRCT - This is pretty much all they have to say about it in the 10-K:
Accounts receivable
Accounts receivable primarily consists of billed amounts for products and services rendered to customers under normal trade terms. The Company performs credit evaluations of its customers’ financial condition and generally does not require collateral. Accounts receivables are stated at net realizable value. The Company began insuring its accounts receivable with unrelated third-party insurance companies in an effort to mitigate any future write-offs and establishes an allowance for doubtful accounts as deemed necessary for accounts not covered by this insurance. As of December 31, 2022 and 2021, the Company’s allowance for doubtful accounts was $4,323 and $40,856, respectively. Management periodically reviews outstanding accounts receivable for reasonableness. If warranted, the Company processes a claim with the third-party insurance company to recover uncollected balances, rather than writing the balances off to bad debt expense. The guaranteed recovery for the claim is approximately 90% of the original balance, and if the full amount is collected by the insurance company, the remaining 10% is remitted to the Company. If the insurance company is unable to collect the full amount, the Company records the remaining 10% to bad debt expense. Bad debt expense was $16,664 and $91,048 for the years ended December 31, 2022 and 2021, respectively.