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Hardcore - Not going to argue. Apparently you didn't like the answer provided.
Fed funds rates influence money supply and money supply influences asset prices. That's pretty foundational and if you don't believe it good for you. Maybe phone the Fed and let them know that when the next recession hits they can just keep hiking rates because it has no influence on asset prices or something.
"for a while now". Ah, ok. Well connecting a line between two dots doesn't make a trend.
You asked why people believe x. I answered your question. To ask why two things that tend to be negatively correlated have a positive correlation over a short period of time ignores the fact that on a longer timescale it is a blip.
Another thing to consider (as it applies to funds from the US) is the boomers. If you can invest in risk free treasuries yielding 3% and reduce your retirement nest egg exposure to volatile equities by a fair amount and still mathematically make it to the grave without going broke why wouldn't you?
Plenty of wealthy boomers outsource their investment strategies to money managers who will balance the lowest risk while still attaining the desired outcome.
Re: Interest rates. I think you could have figured this out yourself but go ahead and read the article below. To say that the fed funds rate and broad market indices have positive correlation is false.
How Do Interest Rates Affect the Stock Market?
Updated March 21, 2018 — 10:30 AM EDT
https://www.investopedia.com/investing/how-interest-rates-affect-stock-market/
"What's happening with interest rates?" "Where's the prime headed?" "Is the Fed announcing a rate hike next month?"
Interest rates, the cost someone pays for the use of someone else's money, tend to obsess the investment community and the financial media – and with good reason. When the Federal Open Market Committee (FOMC) sets the target for the federal funds rate at which banks borrow from and lend to each other, it has a ripple effect across the entire U.S. economy, not to mention the U.S. stock market. And, while it usually takes at least 12 months for any increase or decrease in interest rates to be felt in a widespread economic way, the market's response to a change (or the news of a change) is often more immediate.
Understanding the relationship between interest rates and the stock markets can help investors understand how changes might affect their lives, and how to make better investment decisions.
The Interest Rate That Impacts Stocks
The interest rate that moves markets is the federal funds rate. Also known as the overnight rate, this is the cost that depository institutions are charged for borrowing money from Federal Reserve banks – an inter-bank loan rate, so to speak.
The federal funds rate is the way the Fed attempts to control inflation (an increase in prices, caused by too much money chasing too few goods: demand outstripping supply). Basically, by increasing the federal funds rate, the Fed attempts to shrink the supply of money available for purchasing or doing things, by making money more expensive to obtain. Conversely, when it decreases the federal funds rate, the Fed is increasing the money supply and, by making it cheaper to borrow, encouraging spending. Other countries' central banks do the same thing for the same reason.
[See some of the resources online brokers offer to keep track of the latest central bank policies here.]
Why is this number, what one bank pays another, so significant? Because the prime interest rate or prime lending rate – the interest rate that commercial banks charge their most credit-worthy customers – is largely based on the federal funds rate. And the prime forms the basis for mortgage loan rates, credit card APRs and a host of other consumer and business loan rates.
What Happens When Interest Rates Rise?
When the Fed increases the federal funds rate, it does not directly affect the stock market itself. The only truly direct effect is that it becomes more expensive for banks to borrow money from the Fed. But, as noted above, increases in the federal funds rate have a ripple effect.
The first ripple: Because it costs them more to borrow money, financial institutions often increase the rates that they charge their customers to borrow money. Individuals are affected through increases to credit card and mortgage interest rates, especially if these loans carry a variable interest rate. This has the effect of decreasing the amount of money consumers can spend. After all, people still have to pay the bills, and when those bills become more expensive, households are left with less disposable income. This means that people will spend less discretionary money, which will affect businesses' top and bottom lines (that is, revenues and profits).
[Revenue and profit growth can impact a company's stock performance. Learn how to use that knowledge as you invest through our Investing for Beginners course on the Investopedia Academy]
But businesses are affected in a more direct way as well. They too borrow money from banks to run and expand their operations. When the banks make borrowing more expensive, companies might not borrow as much and will pay higher rates of interest on their loans. Less business spending can slow down the growth of a company; it might curtail expansion plans and new ventures and even induce cutbacks. There might be a decrease in earnings as well – which, for a public company, usually means the stock price takes a hit.
Interest Rates and the Stock Market
So now we see how those ripples can rock the stock market. If a company is seen as cutting back on its growth spending or is making less profit – either through higher debt expenses or less revenue – then the estimated amount of future cash flows will drop. All else being equal, this will lower the price of the company's stock. (A key way to value a company is to take the sum of all the expected future cash flows from that company discounted back to the present. To arrive at a stock's price, take the sum of the future discounted cash flow and divide it by the number of shares available.)
If enough companies experience declines in their stock prices, the whole market, or the key indexes (like the Dow Jones Industrial Average or the S&P 500) that many people equate with the market, will go down. With a lowered expectation in the growth and future cash flows of the company, investors will not get as much growth from stock price appreciation, making stock ownership less desirable. Furthermore, investing in equities can be viewed as too risky compared to other investments.
However, some sectors do benefit from interest rate hikes. One sector that tends to benefit the most the financial industry. Banks, brokerages, mortgage companies and insurance companies' earnings often increase as interest rates move higher, because they can charge more for lending.
Interest Rates and the Bond Market
Interest rates also affect bond prices and the return on both CDs and T-bonds and T-bills. There is an inverse relationship between bond prices and interest rates, meaning that as interest rates rise, bond prices fall, and as interest rates fall, bond prices rise. The longer the maturity of the bond, the more it will fluctuate in relation to interest rates. (Learn the basic rules that govern how bonds are priced in Bond Market Pricing Conventions.)
When the Fed raises the federal funds rate, newly offered government securities, such Treasury bills and bonds, are often viewed as the safest investments and will usually experience a corresponding increase in interest rates. In other words, the "risk-free" rate of return goes up, making these investments more desirable. As the risk-free rate goes up, the total return required for investing in stocks also increases. Therefore, if the required risk premium decreases while the potential return remains the same or becomes lower, investors might feel that stocks have become too risky, and will put their money elsewhere.
One way that governments and businesses raise money is through the sale of bonds. As interest rates move up, the cost of borrowing becomes more expensive. This means that demand for lower-yield bonds will drop, causing their price to drop. As interest rates fall, it becomes easier to borrow money and many companies will issue new bonds to finance new ventures. This will cause the demand for higher-yielding bonds to increase, forcing bond prices higher. Issuers of callable bonds may choose to refinance by calling their existing bonds so they can lock in a lower interest rate.
For income-oriented investors, the Fed's reducing the federal funds rates means a decreased opportunity to make money from interest. Newly issued Treasuries and annuities won't pay as much. A decrease in interest rates will prompt investors to move money away from the bond market to the equity market, which then starts to rise with the influx of new capital.
What Happens When Interest Rates Fall?
When the economy is slowing, the Federal Reserve cuts the federal funds rate to stimulate financial activity. A decrease in interest rates by the Fed has the opposite effect to a rate hike. Investors and economists alike view lower interest rates as catalysts for growth – a benefit to personal and corporate borrowing, which in turn leads to greater profits and a robust economy. Consumers will spend more, the lower interest rates encouraging them to feel they can finally afford that new house or send the kids to a private school; businesses will enjoy the ability to finance operations, acquisitions and expansions at a cheaper rate, thereby increasing their future earnings potential, which, in turn, leads to higher stock prices.
Particular winners of lower federal funds rates are dividend-paying sectors such as utilities and real estate investment trusts (REITs). Additionally, large companies with stable cash flows and strong balance sheets benefit from cheaper debt financing.
Impact of Interest Rates on Stocks
And by the way, nothing has to actually happen to consumers or companies for the stock market to react to interest-rate changes. Rising or falling interest rates also affect investors' psychology – and the markets are nothing if not psychological. When the Fed announces a hike, both businesses and consumers will cut back on spending; this will cause earnings to fall and stock prices to drop, everyone thinks – and the market tumbles in anticipation. On the other hand, when the Fed announces a cut, the assumption is that consumers and businesses will increase spending and investment, causing stock prices to rise – and the market jumps for joy.
However, if expectations differ significantly from the Fed's actions, these generalized, conventional reactions may not apply. For example, let's say the word on the street is that the Fed is going to cut interest rates by 50 basis points at its next meeting, but the Fed announces a drop of only 25 basis points. The news may actually cause stocks to decline – because assumptions of a 50 basis point cut had already been priced into the market.
The business cycle, and where the economy is in it, can also affect the market's reaction. At the onset of a weakening economy, the modest boost provided by lower rates is not enough to offset the loss of economic activity, and stocks continue to decline. Conversely, towards the end of a boom cycle, when the Fed is moving in to raise rates – a nod to improved corporate profits – certain sectors often continue to do well, such as technology stocks, growth stocks and entertainment/recreational company stocks.
The Bottom Line
Although the relationship between interest rates and the stock market is fairly indirect, the two tend to move in opposite directions: as a general rule of thumb, when the Fed cuts interest rates, it causes the stock market to go up; when the Fed raises interest rates, it causes the stock market as a whole to go down. But there can be no guarantee about how the market will react to any given interest rate change the Fed chooses to make. For example, in 2013, in defiance of conventional wisdom, both interest rates and the S&P 500 rose significantly. Economists are still trying to figure that one out.
SCKT news - Trying to soften the blow from another terrible quarter I wonder?
Socket Mobile Delivers SocketScan®Setting the Standard for Companion Barcode Scanners
PR NEWSWIRE 6:00 AM ET 4/25/2018
NEWARK, Calif. , April 25, 2018 /PRNewswire/ -- Socket Mobile, Inc. , a leading innovator of data capture and delivery solutions for enhanced productivity, is delivering its SocketScan® Series – ergonomic, colorful, long-lasting barcode scanners with Bluetooth wireless technology. The SocketScan line includes 2D, 1D linear imaging and 1D laser barcode scanners. In addition to excellent scanning performance, these colorful scanners are available in blue, green, red, yellow and white.
The SocketScan Series is versatile in terms of scanning requirements and colors, providing businesses with options to individualize and personalize their solutions in today's fast moving and colorful world.
SocketScan is the next advancement in the Companion Scanning Market. The SocketScan S700 (linear imager - $229 MSRP), S730 (laser - $329 MSRP) and S740 (2D imager - $329 MSRP) scanners include intuitive lights for clear notifications during operation, comfortable ergonomics for all day use, and longer-lasting batteries to cover two entire work shifts or more. It is compatible with all major operating systems, as well as the 750+ applications developed by partners leveraging the Socket Mobile SDK, enabling current customers to transition without any upgrades or changes to their current applications.
"The SocketScan series provides our customers with the dependable ease of use they love about our products, providing additional features such as a more intuitive interface and standard AA rechargeable batteries, in a familiar but improved look. SocketScan is the result of our ongoing efforts to provide quality, colorful scanners that just work," said Kevin Mills, President and Chief Executive Officer.
The SocketScan S740 is a very affordable and effective, universal scanner, able to fulfill the demands of 1D and 2D barcode scanning, which provide both performance and future-proofing for customers on a tighter budget. (Learn more about the S740: https://www.socketmobile.com/products/700-series/socketscan/s740)
"Socket Mobile(SCKT) recognized the need for an all-in-one universal scanner at an affordable price, breaking the current norm that 2D solutions are often twice the cost of basic 1D scanners. The S740 breaks that model and is the affordable, universal 2D/1D scanner option available in the market," said James Lopez, Vice President of Marketing.
Crypto - Anyone else long some crypto's? Certainly looks like the turnaround has begun. My position is up a bit over 20% now (combined BTC & ETH). It is a < 3% position for me so not going to finance my dream yacht but so far so good!
TSLA sure looks like it wants to continue to leg down. A close below $280 would confirm this IMO.
I reloaded my TSLA puts just above $300 after the recent runup. Also bought some $100 LEAP puts just in case.
BMW and a bunch of other car manufacturers with actual economies of scale are investing heavily in EV technology. Only a matter of time before they crush Tesla. At some point Elon's investors will come to the realization that they can't continue to fund his money losing venture. He is like a cat with several dozen lives given how many times he has issued targets and missed them. I don't think there are too many left (we'll see).
Re: Yields
The yield curve is flattening though with the spread between the 5yr and 30yr becoming quite tiny. This is impossible to ignore. The weakness of the USD since Feb (past few days it has been rallying though) is another question mark given the expectation for future rate hikes on top of a strengthening economy.
I think people are starting to believe that we're at or near a cyclical top and the business cycle is starting to turn. I believe that the valuations given to stocks generally precede fundamental data to confirm this. Perhaps that's what were starting to see.
SCKT, I think lower. Consider they got their fill of 1.2m shares (going off memory) up to $3.90. How many million were tendered above that to 4.25? Now with deteriorating financials how many are willing to continue to be stuckholders? I think there are more that will throw in the towel. I think we see capitulation following the ER
Any concern about dilution? There is a significant overhang from derivative instruments at CAD .50 and then at .70
I guess I had missed the convertible debt announcement a few weeks ago.
They have to get across the finish line with the carriers and hopefully the need to finance operations with equity will be in the past.
Probably just slept in EOM
SIM/SYATF $650k first responder sale. Good to see a followup order from an existing customer
MONTRÉAL, April 23, 2018 (GLOBE NEWSWIRE) -- Siyata Mobile Inc.(SYATF) (the "Company" or "Siyata") is pleased to announce that the Company has received an additional Purchase Order (“PO”) on a first responder contract of $650,000 for its Push-to-Talk Over Cellular (“PoC”) devices, accessories and software solutions. This is an addition to the original PO of $1.9MM announced December 20, 2017.
Marc Seelenfreund, CEO and Chairman of Siyata Mobile(SYATF), commented, “Our Push-to-Talk devices continue to grab market share and gain momentum to be a leading choice of enterprise customers choosing to upgrade their antiquated two-way radio systems with much more relevant Push-to-Talk Over Cellular solutions. PoC is delivered over commercial grade cellular networks, allowing nationwide coverage as opposed to LMR which is limited in distance. This increased mobility and next generation development is a clear choice for enterprise workforces.”
According to the United States Department of Transportation, in 2015 there were over 12 million fleet vehicles in the United States. Siyata aims to be the leading provider of connected vehicle and mobile hardware solutions as these commercial fleets upgrade their communication platforms to be compatible with next generation networks, PoC solutions and other software applications.
The Company also announces that it will be releasing its 2017 year-end financials on April 30, 2018, instead of the originally announced April 26, 2018 date due to management scheduling. The Company will now be holding a conference call on Tuesday, May 1, at 9:00am Eastern Time (6:00am PST) to discuss year-end results, along with a Q&A session with Siyata Mobile(SYATF) CEO and Chairman, Marc Seelenfreund.
Details of the conference call:
Date: Tuesday, May 1
Time: 9:00 a.m. Eastern Time
North America dial-in number: 1-877-291-4570
International dial-in number: 1-647-788-4919
PROM creeping back up. Wonder if the large seller is done or just forgot to put in their order for the week
Bitcoin $9k and Ether $650 have both been moving nicely higher. All of this in the face of anti crypto movements by governments. I am not a "believer" in it becoming a mainstream currency or replacing gold but I do think the girl still has some legs
GLGI - Heard back from the CFO
He said that it takes about 20 employees to run an injection molding machine 24/7. I'm guessing they have 4 shifts w/ 5 people on a machine. To me this seems awfully high, what could five people possibly be doing while the machine is doing the injection molding? Something I don't understand about their process obviously.
Beyond that he said they have a mix of 60% FT and 40% contract production labor and experience high turnover which is particularly acute when adding a bunch of new heads as is currently the case.
So with five new machines & 20 per that means they nearly doubled their production workforce. Add on top that the cost of recruitment, training, and higher turnover and voila that's the lions share of the increase in COGS.
The other thing he mentioned was that they made a business decision to ramp volume at lower margins with the pallet leasing customer(s) with the expectation that the volume will provide nice leverage to the bottom line once the labor issues stabilize.
GLGI Yes I saw that and I agree. That said if they just controlled their production costs they would be bputting up some nice #'s so I was ignoring it
Thanks for quoting that. I thought for sure it was 2018.
I thought I'd make another attempt to ride this pony but now after getting a kick to the teeth I'm calling it quits. Hopefully it doesn't take long for them to get the ship righted and the stock to appreciate so I can take my capital elsewhere.
GLGI - I wrote to IR. If I don't hear back I am giving them a call.
I'll update the board if I get any new info. I am concerned that either their finance people suck at their jobs and don't know what is driving the financials or that they are purposely providing inadequate details.
I was able to sell some at .43 this morning but what didn't sell I am holding. The stock should get a boost once the revs from the new contract come through in the #'s hopefully.
GLGI - Yeah I read that. The cost for the new machines should have been capitalized to the balance sheet and not impact COGS so I'm not sure why they mention it there. $1.7m extra showed up in COGS. That's quite a bit of extra production employees & training. The explanation doesn't seem adequate to me. There are certainly some fixed COGS which with the big increase in volume would benefit contribution margin so to me the relative change in COGS is worse than it appears at first.
Lets say each new production employee costs $25/hr burdened. That's an extra $13.5k/qtr. 25 new employees for the full quarter would be about $340k. That leaves an awful lot in the difference.
GLGI - Not impressed eom
Yes but why wouldn't they have contingencies in place? They had to know the issue w/ the mill was coming. They issue a PR that basically says they've shut down and don't know when they will start back up. Meanwhile they just did a financing that requires gold delivery by end of June (< 2 months from now).
They get an F for planning on this as well as communicating. Certainly it isn't good news and perhaps with the mill there isn't anything they could do. But that doesn't excuse the fact that a PR saying the mill deal was terminated but they're falling back on trucking ore to XYZ mill in the meantime which will incrementally increase costs by X% while they attempt to find a solution w/ RedStone would have been much better.
I thought CAD 0.095/0.10 was a pretty good price until this morning.
You're correct that there is value here but my faith in Greg has been significantly diminished.
IVFH has some strong bidding. There was a 115k bid at .95
Value - Have you been following SINO at all? Shareprice has really crumbled after their $3m financing last month. Super bad timing on management's part.
I haven't dug deep on latest developments but the new sulfur shipment contract expected to contribute $10M to sales March-Dec this year is a positive.
Some tough comps coming up though. Might be some dangerous bottom fishing.
Crypto - FWIW I rebought bitcoin and ether last week. The implementation of the Lightning Network for BTC has solved the issue of high transaction fees and wait times for transactions to clear.
I think at some point here we go into another crypto craze and maybe see new highs. The drop in price for bitcoin has caused many mining ops to go underwater except for those w/ very low electricity costs. That plus the estimated $25B of selling to pay tax bills that is now over makes me think we've hit or are close to a bottom in BTC.
Their forward gold financing comes into question. They had until the end of Q2 to meet the requirements. So what happens if/when they default on that?
Where is the next closest mill with capacity? God, I just hope someone in their office is figuring out the #'s. There has to be a work around for this rather than just shutting the mine down.
I'm so mad I could punch a baby
I don't know the answer to any of that.
I am just shocked at the news. Either they had zero foresight into this being a potential problem which would be bad or they did but still didn't create contingency planning.
Shutting down mining operations and a PR that makes it sound like they don't have a plan and aren't sure when they'll have one.
Makes me sick I was buying shares last week.
SCKT - I've picked up some new shorts replacing what I covered in the $2.90's. The poster on Yahoo provided their measurement for the quarter and it looks bad. Strangely the poster uses SSK's signature line (close in any case)
edit - Of course if the quarter doesn't include any large enterprise orders the decline would go from bad to epic.
What is worse is that they had to see this coming yet released that PR about "first gold revs in Q2".
GWA Terrible news! Explains some of the recent selling which I was unfortunately buying.
Do you have a sense for what those "certain conditions" were that couldn't be satisfied regarding the mill?
Interesting. So you are a billionaire?
Exchange advice requested - As someone in the US that doesn't particularly care for the decision by Coinbase to turn over data to the IRS I'd appreciate any recommendations for alternate exchanges to use.
TIA
FB - Initiated a short position. Some tidbits from the article linked below. Doesn't bode well for FB although it is hard to know whether the people quitting FB are part of the cohort that drives majority of FB revenue. I imagine the hardcore FB users probably aren't abandoning it.
• 17% of Americans have deleted the Facebook app from their phone due to concern for their privacy.
• 35% of Americans are using Facebook less than they used to as a result of the privacy issue.
• 9% of Americans have deleted their Facebook account.
http://www.breitbart.com/tech/2018/04/12/survey-nearly-1-in-10-americans-have-deleted-their-facebook-account-due-to-privacy-fears/
Stop just above $169, initial target is $150
TK - You nailed it LC. Nice job. I wish I would've been buying around the PP instead of sitting on a solidly in the red position, but it is getting less red nearly every day since the PP so I'll take it.
FYI - Gold is rallying above $1,360 now. If it breaks $1,370 it will be a technical breakout and I expect gold stocks to have a strong rally (they're already trading up).
For savvy traders out there looking for something to trade this is a good place to look.
EXN.T: What were your thoughts regarding the most recent Q? Guidance is for a decline in production in Q1. Stock seems to be holding steady around a buck fifty.
TORONTO, March 22, 2018 /CNW/ - Excellon Resources Inc. ("Excellon" or the "Company") is pleased to report financial results for the three- and twelve-month periods ended December 31, 2017.
2017 Financial and Operational Highlights (compared to 2016)
Completion of Optimization Plan resulting in dry mining conditions with two consecutive quarters of increased production and lower costs
Underground drilling successfully added near-term mineable mineralization
Commenced surface exploration program to define new targets surrounding Platosa; initial drilling program at Miguel Auza to commence in Q2
Revenue increased 25% to $21.2 million (2016 – $17.0 million)
Silver equivalent ("AgEq") production increased 14% to 1.5 million ounces (2016 – 1.3 million AgEq ounces)
AgEq ounces payable increased 18% to 1.3 million ounces (2016 – 1.1 million AgEq ounces payable)
Gross profit decreased 42% to $0.4 million (2016 – $0.7 million), but totaled $2.6 million in the second half of the year following completion of the Optimization Plan
Total cash cost per Ag oz payable decreased 23% to $10.38 (2016 – $13.42)
Adjusted all-in sustaining cost per Ag oz payable ("AISC") decreased 15% to $21.89 (2016 – $25.83), excluding the one-time sustaining capital expenditures associated with the Optimization Plan, with Adjusted AISC per Ag oz payable of $13.73 in the second half of the year
Adjusted net loss of $3.7 million or $0.05/share (2016 – adjusted net loss of $3.4 million or $0.05/share), excluding non-cash financing loss associated with convertible debentures ("Debentures") issued in November 2015 and accelerated to conversion in December 2017
Net working capital totaled $13.8 million at December 31, 2017 (December 31, 2016 – $8.6 million), following successful equity financing to advance exploration
Q4 Financial Highlights (compared to Q4 2016)
Continued improvement in operations post-Optimization Plan, revenue increased 112% to $7.1 million (Q4 2016 – $3.4 million)
Production increased 55% to 475,007 AgEq ounces (Q4 2016 – 305,934 AgEq ounces)
Sales increased 80% to 435,924 AgEq ounces payable (Q4 2016 – 241,867 AgEq ounces payable)
Gross profit of $1.1 million (Q4 2016 – loss of $0.9 million)
Adjusted net income of $0.9 million (Q4 2016 – adjusted loss of $2.5 million)
Total cash cost per Ag oz payable reduced by 66% to $6.27 (Q4 2016 – $18.48)
Adjusted AISC per Ag oz payable reduced by 67% to $15.84 (Q4 2016 – $48.49)
"During 2017, we achieved dry mining conditions for the first time since the earliest days of Platosa," stated Brendan Cahill, President and Chief Executive Officer. "The stage is now set to ramp production up to optimal levels and begin realizing Platosa's full potential. During Q4 2017 and into Q1 2018, we resolved a few of the outstanding challenges to increased production. Most importantly, we drove the 730 and 725 ramps below Rodilla and 623 mineralization to set up more productive cut-and-fill mining of those mantos in the coming weeks. We expect first quarter production to be 410,000 - 440,000 AgEq ounces, but the work done during the quarter prepares for stronger production through the remainder of the year. We expect to publish an updated mineral resource statement and technical report in April, along with a production outlook for the remainder of 2018."
ATE - There has been a large bidder for the US pink that's been driving the price up recently. I flipped my trading shares today that I bought in the low .30's. I think this one will be a good trader in between significant news.
SCKT - Looks like it should have a technical rally off the bottom here. I sure hope so.
I expect to be covering in the mid to low $2's following the next 10-Q at the end of this month.
In related news Fidelity has upped the borrow rate to 7.25% DESPITE the # of borrows available having increased substantially since the plunge to the upper $2's. The only thing I can think is instead of what's available they look at how long people are holding short positions and if that time period goes up than Fidelity increases the borrow rate.
IVFH - Man I hope so. Them are some ugly #'s. iGourmet, after some of the debt was extinguished at the time of acquisition, has a current ratio of just 0.22!
They should get some savings through sourcing. I'm sure Innovative gets more favorable pricing on foodstuffs than iGourmet did on their own. iGourmet G&A for 2017 was nearly $2.9M or about 1/3 of their total revenue! I'm guessing that G&A is where the majority of cost out comes from.
If Innovative can lower iGourmet COGS by 10% and cut another $600k out of G&A which I'm sure they can that would bring the business unit to around break-even.
I'm guessing we'll see the G&A reduction nearly immediately. Making changes to the supply chain can take time though.
VLE up over 10% on pretty decent volume based on no news that I can find. I've been emailing the resource guy that works for a dude that runs a newsletter and is tied in with the hedge/SWF/family funds types of people.
Waiting to hear back from him. Maybe there is some greater interest starting to take hold finally? Might be wishful thinking but I'll take it on a big up day like today!