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With you on DRX.TO/ADFJF. This was an excellent find by gilead awhile back. I think the recent slide is a healthy pullback after a big run. And a great opportunity to accumulate ahead of what should be a terrific earnings report in a few weeks. But ya never know. Maybe the recent sellers know something. I was confident AATC would report another strong quarter, especially after announcing that large special dividend in January. But then their Q4 numbers last week were surprisingly weak.
IDN up another 28% today?!? High of $4.25. More than a double since Friday morning. And there were a ton of shares available in the low $2's. I sure don't understand the huge rally with the weaker Q1 revenue guidance on the CC.
Thanks for the MITQ info. Def has some hair, as you'd expect with any stock at this price. Couple of points though...they warned us last quarter would be terrible. Because of the Hollywood strike last year. Sounds like that negative impact may drag on for another quarter or 2. Also there's a lot of seasonality on this one. They have 2 stronger quarters, and 2 weaker. Check out the results from fiscal Q1 to get a sense of what they're capable of in their better quarters.
I'm tempted to buy below .50. Stock is trading near cash value & they've got a low float. But just don't see a rush. They don't put out many PRs unfortunately. So next thing will likely be the fiscal Q3 report in May...and it doesn't sound like that's gonna be anything great (it's their other seasonally weak quarter too). MITQ could also face delisting later this year unless they do a reverse split. And maybe that won't even save them.
Not sure why the MITQ downdraft today on volume. Looks like a frustrated holder may have bailed. Can't say I blame em. Last quarter stunk and I don't know if the fiscal Q3 report in May will be much better. Hopefully there's an upturn after that. But they may need a reverse split to keep their listing. Probably a low float spike on MITQ at some point...but who knows when...and from what price.
CCEL jumping 15% on that news to a new 52-week high. Congrats for holding onto this one!
NSYS making another leg higher to the $14's. New 52-week high so momo players may keep chasing it higher in this red hot market. But I took the quick gain from yesterday. Guessing those unusually strong Q4 gross margins drop back in Q1.
Added a few more HHS. Although don't like seeing those large blocks on the ask. HHS should have a series of favorable bottom line comps coming up. Hoping to see some .20-.30/share quarters (excluding 1-times). Think the stock will move up nicely from the $7's if that happens.
Good luck on SOWG. Who knows in this market. IDN also caught my eye after what looked like a nice Q4. But after reading the CC transcript, they're expecting revenues to drop back to $4.3M-$4.4M in Q1. So I passed. Stock opened at $2.05 this morning. And has already hit the $2.90's. Dang
https://finance.yahoo.com/news/intellicheck-announces-fourth-quarter-full-200500247.html
SOWG report caught my eye too. This company looks pretty scammy though? Crazy high growth, no big increase in SG&A with the hyper growth, 35% gross margins (on candy?), manufacturing partnerships in China & Colombia, etc. Maybe it works out but I'm staying away. Reminds me of the China scams of a decade ago.
AATC had a surprisingly poor Q4. Royalty revenues dropped down quite a bit compared to recent quarters. If they'd paid taxes instead of getting a tax benefit, Q4 earnings would have been .10/share or so. I remember saying these guys would have to be idiots to announce that huge 1-time special dividend in January after an anemic Q4. Well...
Good news is the stock is still hanging around $7. I thought it would be down more. Buoyant market helping. As is the hefty dividend yield. But if .10/share is now the norm for quarterly earnings, I'm guessing the stock will re-rate lower as they run into tough comps.
https://finance.yahoo.com/news/autoscope-technologies-corporation-announces-financial-201000237.html
Nice buy on SMCI. Low in the $850's yesterday. High in the $990's today!
Interesting drama on MLR. Company has performed beautifully for many quarters now. And the stock price has responded, especially the last couple of months. People are whining about a stock price that's only up 50% in the past year?? Markets sure are frothy...
Nice to see ELTK getting off the mat. Up a quick 15% from the lows of a few days ago. I bought too many in the $10's so am trimming some. Hopefully just enough to send it to the $12's :)
FEIM now in the $11's ha. I'm happy to keep selling. Apparently the ugly earnings report last week was good news! This market has lost its mind...
Actually on NSYS, those big Q4 margins might be sustainable. Someone asked about it on the CC yest. And the answer from management seems to be maybe? I still have my doubts. But picked up a tiny position around $13 for fun. Just in case the low float maniacs send this one a few bucks higher.
Unidentified Analyst
This may be a question for Andrew or Jay jump in. But, looking at the gross margin, if I'm reading that correctly, I'm seeing there's a 300 basis point improvement over the last quarter. And I see generally your operating expenses have been well controlled. Could you comment on what drove, if that's correct, what drove and what's been driving you mentioned last quarter you were expecting improved gross margins. Is there something happening there?
Andrew LaFrence
Yes. It's a really good question, Thor.
A combination of things that really drove it. One is just an increase of revenue covering our fixed cost structure was helpful. As we did note in earlier calls, we have been really hyper-focused on costs and also customer relationships and making sure that, we are sending those costs back to customers when we've had supply costs. I think it's a combination of us getting in front of some historical cost curves.
But as importantly, understanding the leverage of the business, especially a couple of years out here from some consolidation of our plants. It really just was everybody was operating well. We had a minor mix improvement as well in the fourth quarter, but the team, John Lindeen's team just operated very, very well and executed.
Unidentified Analyst
And do you think that's sustainable? I mean, you've been doing a path here, but is that continuous?
Andrew LaFrence
Jay had a very important concept here is that, since he's been here, there's been continuous improvement in terms of the stability of the balance sheet and the performance metrics. One of the things that's really become important for us is our ability to manage this business. We will continue to look for opportunities to expand the margin.
We are -- as you well know, also the other side of the curve here, where we are starting to see some limited cases of deflation and some of our costs, but we'll keep in front of those, make sure we manage our customer relationships so that, we can eventually continue to drive more volume through the facilities, which is really the key to drive those margins up.
Ok on FEIM. But I sure thought things looked better a week ago going into earnings, with the stock at the same price. Now we know management isn't good at forecasting. Why the heck was he talking UP margins on the last call. Only to deliver an ugly Q3 bottom line. Even excluding the charge...revenues ticked a little higher sequentially, earnings would have ticked a little lower. Not exactly setting the world on fire. Again after management was on the prior call talking about hitting the ground running on those large contracts. Didn't happen. Maybe they'll get their act together in Q4. We'll find out in July. I'm happy to keep selling into this strength. Wish I'd bought heavy on the AH selloff to the $8's!
Looks like DRCT now halted down 17%? Not sure if there's a hit piece out or something. I thought the earnings delay was bad news. But that's in a normal market...
Wow nice recovery on FEIM. Hit the $10.70's this morning. All the way back to where it was trading a week ago...before the terrible earnings. Gotta love this market!
DRCT postpones their earnings report. From tomorrow til next Tuesday. They need more time to complete the audit? Uhhh doesn't exactly help the sketchy nature of this one. Not that it'll matter in this bubbly market.
https://finance.yahoo.com/news/direct-digital-holdings-announces-rescheduling-200100446.html
Yeah heck of a Q4 for NSYS! I was tempted to rebuy a few in the $10's ahead of earnings after it had dropped back from $12+ recently, as they had an easy bottom line comp in Q4. Now wish I had. Certainly wasn't expecting such a huge quarter. Q4 gross margins look unusually high. Maybe there's a 1-timer in there. And obviously the tax benefit. NSYS has some very lumpy quarters. Also saw the total backlog dropped sequentially by over $10M. So that's not great. But this low floater will get a nice pop tomorrow. I don't really wanna chase, but might be worth a scalp in this hot market.
https://finance.yahoo.com/news/nortech-systems-reports-fourth-quarter-204100536.html
SMCI down in the $860's. Anyone dare? Prob runs back over $1,000 before the AI bubble pops.
ADFJF pulling back. From that high in the mid $7's a couple weeks ago...to down near $6. Guessing just a healthy pullback after a great run. I don't see any news? Steel prices have been dropping lately, but that should be a positive for ADFJF.
I've been rebuying some shares on the dip. ADFJF seems like an attractive hold into earnings next month. Should post excellent Q4/annual comps, although it looks like they only give annual numbers. A strong report could send this one to new highs imo
SIGA rocket ride continues. Nobody on board? From the $4's to the $8's in a little over a week! After posting a quarter we knew would be huge. Dang
DRCT down 20% from the morning high. GCT also down over 20% today. Guess not a good day for the scam stocks ha
Will be interesting to watch DRCT after earnings on Thurs. I'd be nervous being short as it's going to be another monster comp. Maybe it'll shoot right back up. Or could crash to the teens on the next short hit piece. I'll be watching from the sidelines.
Been rebuying AATC after a slight pullback lately from over $8 to the low $7's. Not as cheap as it used to be, but still looks attractive into earnings. As should be a very favorable earnings comp for Q4 & the full year. The large special dividend announced in January bodes well for Q4 results imo. Even if Q4 is underwhelming, the 7.2% dividend yield should offer some support.
Nice pop on CSPI. The gift that keeps on giving! Congrats to those who bought that sharp pullback from almost $60 down to the mid $30's. I thought it would bounce higher again with continued Nerges buying. Was tempted to grab a few, but the stock is wildly expensive and def more of a story stock now. Exactly what this market loves!
If it's insiders on ELTK, obviously we'll see some filings. Which we have not yet. I tend to think it's frustrated momo traders who chased the stock to $20+ a few weeks ago. Whoever is selling down here, would love to know what they're buying instead!
I added to ELTK this morning. One of the better things I can find in this expensive market.
Thanks again for the FF alert. Flipped for a quick 10%. Prob goes higher into that special $2.50/share dividend on 4/9. Wish I'd gotten more. Would rebuy on a pullback.
Same thinking on MNDO. Was a great buy in the $1.80's. Taking profits over $2.20 ahead of the dividend. Hoping it ticks a little higher, but obviously going to drop a lot when it goes ex-dividend. Maybe less than the dividend amount since it's a cheap stock. Or maybe more because with flattish numbers for many quarters, there's not much to look forward to til the next annual dividend.
I mean the stock did jump like 30% in a week after earnings. A little profit taking should be expected. Especially with the Singers running things.
DRCT hit $34.75 today. Wow that's a 10 bagger...since the last earnings report! Think I'll start selling now ha. Will be interesting to see the reaction to the Q4 report Thursday after the close. Going to be another quarter of huge growth on the top & bottom lines. But the stock is getting expensive in the $30's...even assuming the numbers are legit.
Another scammy name GCT surged 23% to the $40's today after posting a blowout Q4. Guess those allegations in the short report a few months ago (when the stock was trading around $10) have been completely forgotten...
https://finance.yahoo.com/news/gigacloud-technology-inc-announces-fourth-120000898.html
Thanks on FEIM. Looking forward to your notes.
I'm curious...did you add/hold/reduce your FEIM position today? Stock doing pretty well considering the size of the earnings miss imo. Earlier today I made a post about how I was gonna be a reluctant FEIM buyer on the selloff to the $8's. And hoped the stock would recover back over $10 in a few weeks/months. Well it's almost there already! So I'm trimming a bit more.
ELTK even cheaper when you factor in the $3+/share in cash on the balance sheet now.
25% earnings growth this year might be a stretch after such a strong 2023. I'd be happy with earnings of $1.10-$1.20/share. Combined with the excellent balance sheet...the stock should be trading more in the $12-$15 range imo.
Not that it matters a whole lot (to me at least), but Zacks has an $18 target on ELTK-
https://finance.yahoo.com/news/eltk-eltek-future-growth-profile-170800703.html
Another interesting HHS tidbit on the CC-
"The target to terminate Pension 1 in the spring of 2024 continues without any obstacles. Management expects a pension termination contribution of $7.5 million at the end of the second quarter."
Prob won't be much top line growth here, but we could see some big EPS quarters this year. Which should make for some terrific bottom line comps. Company targeting $6M in savings this year, and then another $10M in savings next year. Will be looking at quarterly earnings over .50/share and a much higher stock price if that happens.
I'll keep accumulating HHS in the $7's. Was actually willing to pay more today after the report. Thought I was gonna be adding around $8.
Wow SIGA now in the $7's! Dang this one was available for many weeks around $5 & below...when we knew that blockbuster Q4 was on the way. Kicking myself. Of course I probably woulda sold in the mid $5's ha. Wonder what those chasing up here are thinking? Numbers will fall off a cliff starting in Q1, then they may lose money the rest of the year.
Oh no HEAR has a ton of seasonality, with Q4 being their biggest quarter by far. They're also making a major acquisition with lots of moving parts. Including a dutch tender for $30M worth of HEAR shares between $13.75 and $15.00. But they're issuing even more shares than that as part of the acquisition. Def more a trader for me. Already been in & out several times since yesterday. Buying in the high $13's and selling in the mid-high $14's.
RCMT prob bounces higher since the big selloff yesterday looked overdone. Still waiting to read the CC transcript. Any concern regarding the jump in receivables? Seems a bit worrisome with their already weak balance sheet.
Hope you're right on FEIM, but that seems like a bold target after the ugly earnings miss yesterday.
Stock doing better than I would have thought today. Dropped to the $8's in AH trading yest. Figured more of the same today. Maybe even a spike down the $7's on some momo panic selling. Was pleasantly surprised when FEIM opened at $9.97! I feel like the stock might be stuck in the $9-$10 area for awhile, so trimmed a few in the high $9's.
BUKS in with another solid quarter. Nice to see backlog above $30M.
https://finance.yahoo.com/news/butler-national-corporation-announces-third-140500118.html
Thought HHS had another good quarter, excluding 1-timers at least. Tough Q4 comp, but those now get easier. Really like the new management team. Another $6M in cost savings planned for 2024. They did say the benefits of Project Elevate would be evident later this year and into 2025. So maybe Q1-Q2 won't be that great? Should have some favorable earnings comps at least.
I'll be accumulating in the $7's. Feel like HHS could be back in the double digits by yearend if things go right.
https://finance.yahoo.com/news/harte-hanks-reports-fourth-quarter-200000987.html