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The chart looks good to me.
http://screencast.com/t/Y2FlMzQ4M2Et
NEW YORK (Dow Jones)--Shares of Reddy Ice Holdings Inc. (FRZ) rose sharply Tuesday on speculation the company may soon settle a price-fixing probe being conducted by a wing of the Justice Department.
In November 2008, the company disclosed that the civil fraud division was looking into whether the packaged-ice company violated the federal False Claims Act by getting "supracompetitive prices" from the federal government in connection with government contracts.
BGB Securities analyst Sam Yake pointed to a recent 8-K the company filed with the Securities and Exchange Commission as a sign Reddy Ice may be gearing up to settle the long-running DOJ probe.
Earlier this month, the company said in a filing it had agreed to settle with one of its insurance carriers regarding "claims for reimbursement of the costs of the ongoing antitrust investigations and related civil litigation," and would receive a payment of $6.6 million from the insurer.
Reddy Ice shares climbed 8.1% to $4.94 in recent trading on heavier-than-normal volume. The stock is up about 21% in the past month.
Representatives from Reddy Ice and the Justice Department couldn't immediately be reached for comment.
"Everything points to a settlement coming sooner rather than later," Yake said, emphasizing that Tuesday's share price movement is driven by speculation that Reddy will follow moves made by competing firms to put price-fixing probes behind them.
Reddy's two largest competitors, closely-held Home City Ice Co. and Arctic Glacier Income Fund (AGUNF, AG.UN.T) settled similar probes by pleading guilty to DOJ charges in June 2008 and October 2009, respectively.
In the Arctic Glacier settlement, the firm's U.S. subsidiary agreed to pay the U.S. a $9 million fine and to cooperate with the DOJ's ongoing investigation of other companies and individuals.
Brig,
Have you looked to see what the other companies settled for? FRZ had approximately $10 mill in equity as of 09/30/09 and I was curious to see if the settlement would take this out. It does look like JPM either added to or took a position in FRZ over the past couple of months and they now own over 6% of the shares outstanding...according to the 13G filed on 01/22/10. Just starting my DD.
Nice call about loading up at $0.15, would have almost 100% return in a couple of days. I sold most of my shares today, since I see no reason to hold with the price so close to 0.29...that being said, something looks suspicious with this announcement and the trading that has occurred afterwards. There will probably be something come out over the next couple of months that brings light to this situation.
"Monday I would think the price wouldn't fall below .15/share as 999 buyers would be tempted to buy there and hold to double their money for a "free" $150 or so. If it does fall there, it would actually be worth buying in bulk and then sell them later at a higher price IMO"
vince
Well, the fact that there was insider buying before the announcement...I would assume that they think it is a positive development. It will be interesting to see how the market responds, as I have never seen anything like it it in my 18 years of investing.
Are you sure about this? It reads to me that they are doing a 1000 to 1 reverse split.
Comtex News Network, Inc. (OTC BB: CMTX - News), a leading provider of economically useful electronic real-time news, content and SmarTrend® market products, announced today that it will hold a special meeting of stockholders to (i) elect directors, (ii) approve amendments to the Company’s certificate of incorporation which, among other things, would effect a 1,000-to-1 reverse stock split of the Company’s common stock and the cash-out of shareholders holding fewer than 1,000 shares, and (iii) ratify the appointment of the Company’s independent auditors. If the stockholders approve the amendments to the Company’s certificate of incorporation, each stockholder will receive one share of the Company’s common stock in exchange for every 1,000 shares of common stock that he or she currently holds.
What is your take on this? They must have a ton of people holding less than 1000 shares that they have to send annual reports and other financial information to. Otherwise, I don't see any benefit to doing a reverse split only to delist. Usually companies do a reverse split so that they can stay listed. CMTX trading at $200 on the pink sheets seems strange to me.
TIA
Vince
I bought some SPCK today at $0.10. Looks like a great risk/reward at these levels.
I was a little dissapointed with those numbers, so I sold my shares this morning. Good luck!
I have no idea; I don't own the stock and haven't really followed for a few months. Just wanted to pass along some information that I came across last night that seemed pertinent to the company’s future.
Good luck with your investment.
Mike, I came across this last night.
http://www.courthousenews.com/2009/11/12/Work-At-Home_Company_Called_a_Scam.htm
2009-11-12T14:58:50
You are going way overboard with your arguments. Are you an insider of 3M? 3M will never buy ALIF in the open market? Never going to collect on their A/R? 3M knows it? Please explain how you know this to be true! Throwing out sentences like this is not beneficial to the reader!
RE "You will NEVER see 3M buy ALIF in the open market. They only do what they need to do to keep their partner from death for a little while because it's obvious -- ALIF is never going to collect on that accounts receivable, ALIF knows it, 3M knows it, and therefore the tiny bone was thrown at ALIF so that they can keep working together for a little while"
Amazing!!!
Have you seen any news on TELT today? I am guessing earnings were released, but I haven't seen anything hit the wires yet. Huge move so far...
Is that you SSKILLZ? Kidding of course, but you are doing the same thing he did on the last earnings report, which I am pretty sure you were not pleased about. Just let it go, there is no reason to just keep rehashing the same thing over and over again. You have made a valid point and we get it! ALIF would be several times higher than where it is now without the A/R issue. The A/R issue has been the main reason why the PE has stayed around 5 over the past year.
A couple of interesting paragraphs in the 10Q.
The Company’s standard payment terms are normally within 90 days. In 2009, the Company has provided extended payment terms (up to 180 days) to certain customers. The Company assesses the probability of collection from each customer at the outset of the arrangement based on a number of factors, including the customer’s payment history and its current creditworthiness. If in management’s judgment collection of a fee is not probable, the Company does not record revenue until the uncertainty is removed.
Management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. The allowance for doubtful accounts of $2,095,000 at September 30, 2009, and $731,500 at December 31, 2008, is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of accounts receivable. In the analysis, management primarily considers the age of the customer’s receivable and also considers the creditworthiness of the customer, the economic conditions of the customer’s industry, the general economic conditions and trends and the business relationship and history with its clients among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts. If judgments regarding the collectability of accounts receivable were incorrect, adjustments to the allowance may be required, which would reduce profitability. Since the Company’s accounts receivable are often concentrated in a relatively few number of customers, a significant change in the liquidity or financial position of any one of these customers could have a material adverse effect on the Company’s financial statements. During the nine months ended September 30, 2009, the Company entered into agreements with certain of its customers to offset accounts receivable of approximately $6.4 million from these customers with accounts payable for the same amount to these customers. The offset of these receivables and payables represents a legal right of setoff pursuant to applicable accounting standards.
I would expect that new contract announcements would come along with the earnings report, that is due out before the 15th.
Volume relatively strong today on ISDR, might be about time for the next leg up.
It's hard to see how that you can go wrong buying at $0.15, when they earned almost $0.02 last quarter. Another strong quarter and this could get fun!
Mike, thanks again. Another great pick!
Looks primed for the next leg up. I added.
Pretty much what was expected, since they released their revenue numbers a couple of weeks ago and margins stayed relatively stable from the 1st quarter. I don't know if this will cause much of a bump in the price come Monday morning though.
here is a link to the release regarding sales.
http://finance.yahoo.com/news/DAC-Technologies-Named-iw-443436676.html?x=0&.v=1
Law Enforcement Associates Reports Record Second Quarter and Six-Month Financial Results; Year-to-Date Revenue Reaches
Wed Aug 12, 2009 6:00am EDT
RALEIGH, NC, Aug 12 (MARKET WIRE) --
Law Enforcement Associates Corporation (LEA) (OTCBB: LAWE)
SELECTED HIGHLIGHTS:
-- Q2 operating income reported at $1.4 million; net income at $789,000,
or $0.03 per share
-- Year-to-date operating cash flow reaches $1.1 million
-- Quoting and booking activity accelerating as stimulus funds reaching
customers
Law Enforcement Associates Corporation (LEA) (OTCBB: LAWE), the
largest U.S.-based developer and manufacturer of electronic surveillance
equipment, today announced record financial results for its second
quarter and six-month period ended June 30, 2009.
Second quarter revenue increased by approximately $5 million, or 267%, to
a record $6.8 million from $1.8 million in last year's second quarter. The
increase was attributable to strong shipping volume, a significant portion
of which was associated with a record contract signed in the first
quarter. Gross margin improved to 33% from 28% in the comparable year-ago
quarter. Income from operations was $1.4 million, an improvement of $1.6
million when compared to a loss from operations of $171,000 in the second
quarter a year ago. Net income was $789,000, or $0.03 per share, a
positive swing of nearly $1.0 million when compared to a net loss of
$167,000, or $0.01 per share, in the second quarter last year.
For the six-month period, revenue increased 123% to a record $8.5 million
from $3.8 million in the 2008 six-month period. Gross margin was 31%
versus 35% in the comparable period a year ago. Operating income was $1.3
million, an improvement of $1.4 million when compared to a loss from
operations of $118,000 in the same period last year. Six-month net income
was $692,000, or $0.03 per share, a positive swing of $840,000 when
compared to a net loss of $148,000, or $0.01 per share, at the six-month
mark last year.
"We have achieved the strongest six-month financial performance in Company
history, and are positioned to deliver record revenue and profitability
for our full-fiscal year as well," said Paul Feldman, president. "We've
seen a marked improvement in sales activity during recent weeks, as the
$4 billion in law enforcement funding from the American Recovery and
Reinvestment Act has begun to reach our customers."
"There is a growing spectrum of new business opportunities emerging on the
horizon, and we are taking aggressive action to capitalize on them,"
Feldman added. "Our increased investments in research and development
should result in the launch of a key new product offering in the coming
months. In addition, we are strengthening our business development efforts
and strategic initiatives, and hope to announce details of some of these
programs in the coming weeks."
In commenting on the 1.2 million shares of LEA redeemable common stock
that became exercisable on August 1, 2009, Feldman said, "We are in
discussions with the party holding these redeemable shares, and remain
confident that we will be able to resolve the issue in a manner favorable
to both the Company and the holder."
Paul Briggs, chief financial officer, said, "Our balance sheet as of June
30 reflects LEA's improving financial strength. Subsequent to the close of
the quarter, we have added significantly to the Company's cash and working
capital positions, and we remain free of any long-term debt."
About Law Enforcement Associates Corporation
LEA is a leading security and surveillance technology Company that
manufactures and markets a diverse product line to the worldwide law
enforcement, military, security and corrections markets. The Company's
Audio Intelligence Devices (AID) division has been serving the law
enforcement sector for more than 30 years and is one of the most respected
names in the surveillance equipment industry. LEA's products are used by a
wide variety of government and non-governmental agencies, as well as
public and private companies. These include military bases, nuclear
facilities, embassies, government installations, oil refineries, United
Nations and NATO locations. LEA's products have been used at high-profile
events such as the Summer & Winter Olympics, Super Bowl, U.S. Golf
Championship, and the Democratic and Republican National Conventions. Its
products include the Under Vehicle Inspection System (UVIS), EDK123
(Explosive Detection Kit), Bloodhound and Birddog GPS Tracking Systems,
Graffiti Cam, Letter-bomb Visualizer Spray, and a wide variety of Audio &
Video Surveillance Equipment. Headquartered in Raleigh, N.C., the Company
has been featured in many industry publications and websites. For more
information, please visit www.leacorp.com.
Forward-Looking Information:
The statements in this news release contain forward-looking information
within the meaning of the Private Securities Litigation Reform Act of
1995. Statements that use words such as "believe," "anticipate,"
"estimate," "intend," "could," "plan," "expect," "project," "predict,"
"forecast," "outlook," "potential," "continue," "may," "future," "can,"
"enhance," and "should," or the negative of these, as well as similar
expressions, can be used to identify forward-looking statements. Such
forward-looking statements involve certain risks, assumptions and
uncertainties, including the inability to generate and secure the
necessary product sales, or the lack of acceptance of the Company's
products by its customers. In each case actual results may differ
materially from such forward-looking statements. The company does not
undertake to publicly update or revise its forward-looking statements
even if experience or future changes make it clear that any projected
results (expressed or modified) will not be
realized.
Law Enforcement Associates Corporation
Consolidated Statement of Operations
Three Months ended June 30, 2009 and June 30, 2008
June 30, June 30,
2009 2008
----------- -----------
Revenues $ 6,786,665 $ 1,848,700
Cost of goods sold 4,568,594 1,327,259
----------- -----------
Gross profit 2,218,071 521,441
----------- -----------
Research and development 138,199 30,688
Operating expenses 683,538 662,238
----------- -----------
Total operating expenses 821,737 692,926
----------- -----------
Net income (loss) before other income (expenses)
and income taxes 1,396,334 (171,485)
----------- -----------
Other income (expense)
Loss on sale of assets (8,361) (43,666)
Other income 7,504 -
Interest income 25 308
Interest expense (111,113) (30,919)
----------- -----------
Total other income (expense) (111,945) (74,277)
----------- -----------
Net income (loss) before income taxes 1,284,389 (245,762)
Income tax (expense) benefit (495,131) 78,824
----------- -----------
Net income (loss) $ 789,258 $ (166,938)
=========== ===========
Net income (loss) per weighted average share,
basic and diluted $ 0.03 $ (0.01)
=========== ===========
Weighted average number of shares, basic and
diluted 25,782,436 25,782,436
=========== ===========
Law Enforcement Associates Corporation
Consolidated Statement of Operations
Six Months ended June 30, 2009 and June 30, 2008
June 30, June 30,
2009 2008
----------- -----------
Net sales $ 8,538,399 $ 3,828,359
Cost of sales 5,854,309 2,499,910
----------- -----------
Gross profit 2,684,090 1,328,449
----------- -----------
Research and development 176,099 39,892
Operating expenses 1,245,743 1,406,544
----------- -----------
Total operating expenses 1,421,842 1,446,436
----------- -----------
Net income (loss) before other income (expense)
and income taxes 1,262,248 (117,987)
----------- -----------
Other income (expense)
Loss on sale of assets (8,361) (43,666)
Other income 10,338 6,606
Interest income 25 1,320
Interest expense (136,664) (62,045)
----------- -----------
Total other income (expense) (134,662) (97,785)
----------- -----------
Net income (loss) before income taxes 1,127,586 (215,772)
Income tax (expense) benefit (435,546) 67,428
----------- -----------
Net income (loss) $ 692,040 $ (148,344)
=========== ===========
Net income (loss) per weighted average share,
basic and diluted $ 0.03 $ (0.01)
=========== ===========
Weighted average number of shares, basic and
diluted 25,782,436 25,782,436
=========== ===========
Law Enforcement Associates Corporation
Consolidated Balance Sheets
June 30, 2009 and December 31, 2008
June 30, December
2009 31, 2008
ASSETS (Unaudited) (Audited)
----------- -----------
CURRENT ASSETS
Cash $ 734,550 $ 254,705
Trade accounts receivable (net of allowance
for doubtful accounts of $30,000 and $30,000
at June 30, 2009 and December 31, 2008,
respectively) 1,876,973 2,011,293
Accounts receivable - other 49,253 -
Inventories 1,529,329 1,368,049
Prepaid expenses 49,837 45,629
Deferred tax asset - current 304,326 244,741
----------- -----------
Total current assets 4,544,268 3,924,417
----------- -----------
PROPERTY AND EQUIPMENT - net 158,620 170,027
----------- -----------
OTHER NON-CURRENT ASSETS
Intangibles - net 2,092,431 2,174,564
Assets held for sale 335,505 335,505
Deferred tax asset less current portion 565,995 820,425
----------- -----------
Total non-current assets 2,993,931 3,330,494
----------- -----------
Total assets $ 7,696,819 $ 7,424,938
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 362,926 $ 331,451
Line of credit 439,450 1,038,809
Accrued expenses:
Income taxes 240,702 -
Compensation and payroll taxes 139,961 126,695
Profit sharing plan 29,994 76,769
Warranty provision 54,865 58,809
Other accrued expenses 65,392 97,205
Deferred expenses 56,336 104,628
Customer deposits 4,019 30,540
----------- -----------
Total current liabilities, before shares
subject to redemption 1,393,645 1,864,906
----------- -----------
Common stock, subject to possible redemption,
1,200,000 shares, at redemption value 1,491,476 -
Total current liabilities 2,885,121 1,864,906
----------- -----------
Total liabilities 2,885,121 1,864,906
----------- -----------
Commitments and contingencies
Common stock, subject to possible redemption,
1,200,000 shares, at redemption value - 1,440,374
----------- -----------
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value, 50,000,000
authorized, 25,782,436 issued and outstanding
at June 30, 2009 and December 31, 2008 25,782 25,782
Treasury stock at cost, 595 shares of common
stock held by the Company (625) (625)
Paid in capital in excess of par 4,995,595 4,995,595
Retained earnings/(accumulated deficit) (209,054) (901,094)
----------- -----------
Total stockholders' equity 4,811,698 4,119,658
----------- -----------
Total liabilities and stockholders' equity $ 7,696,819 $ 7,424,938
=========== ===========
Just took a position at $0.39. Looks like a great LT investment.
The chart pattern looks great. Looking forward to earnings.
http://screencast.com/t/5JteokAzbN
I know you aren't a into technicals, but DAAT's chart looks fantastic. Volume coming in today as well.
http://screencast.com/t/tpLvNM5i
GAXC starting to perk up. Hopefully we get a nice move after earnings.
Yep, I thought about taking some of those shares at 0.27, but I already have a ton of shares from .13 or so when Mike first mentioned it. The chart looks fantastic, especially if we get over 0.27 with volume today.
Strange...I read the news this morning and put an order in for 10k shares at .26 and was filled immediately, then I put another order for 5k at .26 and was filled once again. I have never been able to buy a bb stock pre-market before.
EDIT: someone had an order in ARCA to sell, which is why my order filled.
Do you know when DAAT plans to release earnings? I am guessing around the 15th of next month, but thought I would ask. I bought a few shares at 0.75 and 0.731 today.
DAAT's chart looks ready, especially if it can get over $0.75. I added quite a few shares today and will add more when it breaks.
I like the volume spike today. I have a feeling that we will see some price movement tomorrow.
I noticed from the 10K that 92% of accounts receivables were from 4 customers. Customer A = 49%, customer B = 16%, customer C = 15% and customer D = 12%. They did not disclose who the 4 customers were. Can anyone on this thread shed any light on this. I am a credit analyst and would like to analyze these companies to check the likelyhood of repayment. I will contact the company if I can't get anything here. Thanks.
I am having a hard time figuring out how they get their percentage figures?
For the fourth quarter 2008, net sales were $7,681,874, as compared to $5,817,148 for the fourth quarter of 2007, an increase of $1,864,726, or 24%. Income before taxes for the fourth quarter 2008 was $387,595, as compared to $156,408 for 2007, an increase of $231,187, or 60%. Net income for the fourth quarter 2008 was $223,146, as compared to $95,708 in 2007, an increase of $127,438, or 57%.