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"Northstar Electronics, Inc.'s (NEIK) CEO Dr. Wilson Russell Participated in the 2017 CANSEC Global Defense & Security Trade Show"
He probably had to buy a ticket to attend. Yep, success is still just around the corner .... and has been for about 10 years now!
Pat
I'm curious to know why you think that a "buyout is likely". Are you basing it on Meany's age and the inevitability that someday he'll have to give up his interest one way or another? Is it something that you would just "like" to happen as opposed to having some evidence that something is in the works? Not being a smart aleck ... just curious about your basis for believing that a buyout is "likely".
I can see why some would be likely suitors, but I haven't seen any indications that there is a likely seller. I think Meany considers this company as precious as his life. Charleton Heston's NRA quote comes to mind when I think of Meany's willingness to part with MKRS.
Pat
Don't take a check!
Pat
That same email conversation will be equally optimistic this time next year as you're assured that an MOU is an extremely complex instrument that takes time to get signed. That will continue until they announce a new and different fantastic "potential" deal. This is beyond comical.
Pat
"They are waiting on the contract to be signed. The aerospace company is in the turtle mode."
.... and I fully expect that the status as you describe it will remain unchanged until they introduce an exciting new replacement client. Rinse and repeat.
Pat
NEIK has a history of "done deals". I expect this to be similar. It's probably getting close to winding this one down in favor of announcing a new potential client that promises to be even more lucrative.
Pat
What's the ratio this time?
Pat
Any news on when JNUG will split again?
TIA
Pat
I think you are spot on. It is a hobby for him and he's as happy as a clam.
Pat
I think the only way that Meany leaves the building is by a hearse. He is the exalted king in the eyes of the Navy .... and Navy is not only their bread and butter, it's the china, the stemware, the cutlery, and the drinks. Without Meany, we dine at the drive-thru window.
Pat
Did you just copy and paste that message from last year? <G>
Pat
Be patient.
Pat
Take a look at their share price history and their record of revenue generation. I've watched this one for about five years and I can almost guarantee that a couple of years from now they'll be issuing PRs about an impending deal that will have nothing to do with an airplane. Their past is prologue. They always talk about the "company-changing" deals that are just on the horizon. Mark my words, the share price history and revenue generating track record will be no different five years from now.
You might be able to flip this one for pizza money. Just make sure you bail on the heavy volume days. Most of the time this stock is not liquid enough to sell sufficient shares that you'd need to sell to make a flip worthwhile. You just need to be disciplined enough to sell when the newbies are buying on "the new story" or upon the company issuance of an empty and vague PR that suggests that success is still just around the corner. That's typically when the volume surges occur. Take advantage of that like others routinely do. If you don't believe it, just sit back and watch this one for awhile. You'll see the pattern.
Good luck.
Pat
It's always comical to read their PRs. Deliberately vague and essentially empty. It usually drags in new buyers though to join the disappointed ones who bought earlier. The same fate awaits the new buyers.
IMHO
Pat
I think my comment went over your head ....
Pat
Is it conceivable that he knows exactly what he's doing and has been doing it flawlessly for years while investors are the ones that aren't managing their assets well?
Pat
I'm pretty sure we're hearing it now.
Pat
Half of your last statement is good advice. <G>
Pat
Your tactic of taking it personal is quite revealing in terms of the depth of your technical and fundamental analysis. I suspect that this too will have a similar impact on volume.
Good luck anyway.
Pat
Volume is confirming just how huge this news is!
Pat
I'm currently out of the country so I won't be able to listen to the call for another 6 or 7 weeks.
Pat
Thanks, O. It looks like Sealand works with Viking Air who manufactures small planes. Maybe they would subcontract to Viking if NEIK gets this contract? I'm just trying to figure out how much they can make per plane. Their goal according to the Feb PR is to have 2 or 3 planes this year. Since NEIK will be making the plane under contract for someone else who will obviously get the lion's share of the sale price, and NEIK would have to pay the subcontractors to manufacture the plane, what percentage of a sale do you suppose would be theirs to keep for their bottom line? At a couple of million per copy, the revenue stream doesn't look too awfully big unless Wilson has one heck of a sales force and Viking would have pretty large capacity. I wonder why this aerospace company no longer has interest in continuing to manufacture themselves ...
Pat
Can you tell me where NEIK's production facility is located? TIA.
Pat
Are you saying they will be manufacturing the plane at the production facility of the company who is potentially awarding them the contract?
Pat
Here's what the Feb PR states:
"We believe that in 2016 Q1/Q2, NSEL should complete negotiations with an international aerospace company and sign an agreement for the rights to a single engine turboprop commercial aircraft. This plane has an excellent performance history and new enhancements are now being implemented. With the agreement signed, NSEL plans to initiate production and roll out a marketing program aimed at introducing the new version of the plane in the world marketplace."
I'm not sure I know precisely what this means. Are they going to produce and roll out a marketing plan? Or are they going to first start to build someone's airplanes for them and then try to sell them. If so, do you know the location of their production facility?
Pat
I didn't see that level of specificity in any of their earlier PRs. Do they currently have a facility to build airplanes or manufacture parts?
Pat
"I think the company with the plane is pacific Aerospace. The plane is the CRESCO ..."
Does anyone yet know what role they will play if they get a contract? Their PR says that once they have finalized the contract, they will "begin their marketing campaign" or something similar to that. I assume that means they are going to be selling someone's airplanes for them. Is that the consensus here?
Pat
Wouldn't you think that L3, or whomever, would have the first shot at the PR if it's a buyout? If it's a partnership or refinancing, I could see the PR breaking from IMSC.
Pat
Nice little gain for L3 today.
Pat
IF there is going to be a buyout, (no absolute certainty of that) the price was probably determined shortly before IMSC put out the PR a couple of months ago about the 30 June date. The time since has likely been spent ironing out details. The same would hold true if the major event is going to be some type of partnership or other financial arrangement. Our current lenders' problems may not even be our problems any longer unless the buyer/partner backed completely out since the PR.
Like some others, I find comments made by both dsully and Percy to be a stretch but I would concede that we may have unintentionally embellished comments such as "last victory lap" and "talking with 5 or 6 parties" as fodder for what we'd like the outcome to be, rather than what it ultimately will be. At times we have had a tendency to morph our speculation into accepted fact without recognizing that mutation.
Even though it may be unwarranted, I anticipate real disappointment here if the "major event" is something other than a buyout since many have been so conditioned to expect that outcome. It's remotely possible that a buyout may be one of those issues that we've morphed into a "given" when it's never really been a serious option pursued by the brain trust. The reality remains that no one on this forum really knows. Absent some type of extension past 30 June (not outside the realm of possibility) we might finally know within hours. I find myself hoping for a buyout but I'm not opposed to a partnership or another beneficial financial arrangement. Here's hoping it all works out for us.
Pat
dsully64,
So you believe that negotiations for a sale are still in progress on 28 June. Is that what you're saying?
Pat
Time to begin contemplating another reverse split. They should probably go more than 1 to 10. Otherwise, they'll be doing it 5 or 6 times per year.
Pat
One of the very few stocks I've ever flipped has been IMSC. And remember, I'm just recycling the same investment money with each trade so it's not as if I'm doubling down each time and risking additional money with each play. So essentially, with a net six successful flips, all risk to the core position is gone even if the stock goes to zero. I don't recall how I found this stock but I feel very fortunate that I did. The trading pattern that it's had has been very conducive to flipping .... IF discipline is maintained. It's very frustrating when you dump trading shares and it keeps running but you HAVE to follow your trading targets or you and Mr. Winn are correct. Many try to let a profitable trade run and wind up watching it turn into a loss. I never expect to pick the highs and I never expect to pick the lows. I just want 17.5% after I buy it. I'd do it again but only if I could find another stock like this one. At this juncture, the core position makes discipline infinitely easier only because I know I can't miss the big run if and when it comes even if my timing is poor and I've dumped the trading shares the day before the big run.
Enough flipping strategy discussion. Let's just patiently wait for our payday.
Pat
Yes, of course, the scenario you describe would result in a losing trade. You won't win every trade when you flip or when you buy and hold. No one does. But if you're disciplined, and don't get greedy you can come out reasonably well with a stock that has been trading like IMSC. I set a goal of 17.5% for each flip. Sometimes I might wind up holding that position for better than a month or two if it drops after I buy or if it stays flat. Other times, I might wind up flipping it a couple of times a week if it happens to have a volatile period. I've had multiple trades that I only held for a matter of hours. I've also left some pretty good money on the table after selling the stock when I reached my 17.5% target and it continued going up. Still other times, I haven't had a trading position for months while I wait for the price to fall.
For each trade, I only sell enough of the trading shares to get my initial investment money back. The remaining shares that I don't sell are retained in my core position. As a result, my core shares have a $0 cost basis. It's worked for me but, as I say, you have to be disciplined or a trade can go south exactly as you have described. I try to hit singles by flipping while my core position is waiting on deck to hit the home run if they get a good pitch. If not, I've lost nothing financially (unless it goes bankrupt and I get stuck holding trading shares) and I've enjoyed the sport. If, by your definition, that's getting "porked", I'm guilty as charged. <G>
I wish I had the balls to short, but I'm not that big of a gambler. Losses can be infinite with that game so that doesn't suit my disposition at all.
Unlike you, I find nothing "wrong" or "stupid" with someone who might have a different investment strategy, so carry on. We're all here to make money however we can.
Good luck. The end may be near. Let's hope we both come out ahead with this one.
Pat
Now you've confused me even more .... Anyone who bought last Thursday or Friday for a flip is up. Today was a very nice day. I'm not sure you have the concept of flipping completely squared away. Anyway, that's not so important but it's just a strategy that shouldn't be ignored in a stock that has traded like IMSC over the last several years. There's nothing evil about short term trading for profits vs long term holding for profits. That's what makes a market. With potential news on the horizon, these trading shares that I picked up last week may not get sold before the announcement but that's certainly a welcome pain I could live with! <G> That's why I posted last week that this might be my "final victory lap" flip.
Anyway ... good luck. We'll know soon ..... I hope!
Pat
Buff,
How does a flipper lose money when the price is rising? Shorters, yes. Flippers? Do you not differentiate between the two because they're typically short term traders? As a flipper, I've never pulled for a down day ..... unless I have no position and am hoping to establish one.
Pat
The most lucrative path for ISC management would be to secure a new financial arrangement and continue to go on their own. Sadly, they currently appear to be a poor risk to attract new lending (without giving up the ship). They are deeply in debt and as a result don't appear to be an attractive candidate for alternate financing.
This puts them at the mercy of others whose interest may not be aligned with management. As a result, my worst fear is the IP isn't as valuable as we all imagine it to be because they can't capitalize on it as a going concern on their own. In other words, "You think your IP is valuable? Take our deal or try to go on your own!" They probably couldn't survive with their current financial structure and, therefore, their IP value leverage is greatly diminished. Bankruptcy may be the only other option if they try to play hardball. Getting "something" is better than getting "nothing". Of course, DMRJ may realize that absent a lucrative offer, it's in their financial interest to continue to milk ISC (at perhaps even higher lending rates) in lieu of selling on the cheap.
IF there is an impending buyout, I don't look for more than $1.75 and perhaps not even that. On the other hand, my optimistic side says that we have once again collectively "morphed" rumor into fact that a buyout is pending. We've seen that pattern so many times on this forum. ISC's stated goal is to improve their capital structure. A sale of the company hardly does that. It just eliminates the current management structure from being players and perhaps makes them "worker bees" ..... hardly their stated objective.
As in all of my WAG's, my guess is as credible/incredible as all others who post theirs. <G> Time will tell.
Pat
I thought I'd flipped my last batch. Maybe there's one "last victory lap" to be taken! <G>
Pat
I appreciate the info. So now they're expanding their role to manufacture aircraft rather than maintain? Or will they be doing both? That's quite a leap. I guess I'm NOT following this closely enough. Manufacturing new aircraft is a completely new twist in this potentially "breaking news" story for me. I hadn't read that in any of the PRs. When did they PR that? I thought it was just a potential "marketing agreement."
Pat