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ASTE: Posted a bit of info previously, up GIGANTIC on earnings
HINT: LARGE CONTRACT NEWS:
Hill International Awarded $50 Million CM/Build Contract by the New York City Housing Authority
Monday July 23, 12:14 pm ET
MARLTON, N.J. & NEW YORK--(BUSINESS WIRE)--Hill International (Nasdaq:HINT - News), the worldwide construction consulting firm, announced today that it has been awarded a contract by the New York City Housing Authority to provide construction management/build ("CM/Build") services in connection with various capital construction projects on housing developments throughout New York City. The three-year contract, which has a one-year renewal option, has an estimated value to Hill of $50.0 million, which includes approximately $6.0 million of management services which will be provided by Hill and approximately $44.0 million of construction services which will be provided by subcontractors.
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The New York City Housing Authority (NYCHA) provides decent and affordable housing in a safe and secure living environment for low- and moderate-income residents throughout the five boroughs of New York City. NYCHA is the largest public housing authority in the United States, with approximately 13,100 employees. NYCHA owns, operates or maintains more than 178,000 apartments in more than 2,600 residential buildings providing housing for more than 408,000 authorized residents.
Hill's services under this CM/Build task-order contract will include pre-construction, construction, construction management and other related services on a requirements basis, including inspection, supervision, management, coordination and administration of all projects assigned to Hill under the contract.
"Hill has extensive experience managing CM/Build contracts for projects throughout New York City," said D. Clarke Pile, P.E., Hill's Senior Vice President and New York Regional Manager. "I am confident that we will help NYCHA achieve success on their capital construction program," Pile added.
Hill International, with 1,500 employees in 70 offices worldwide, provides program management, project management, construction management, and construction claims services. Engineering News-Record magazine recently ranked Hill as the 10th largest construction management firm in the United States. For more information on Hill, please visit our website at www.hillintl.com.
This press release may include certain statements that fall within the definition of "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties, overall economic and market conditions, competitors' and clients' actions, and weather conditions, which could cause actual results to differ materially from those anticipated, including those risks identified in Hill's filings with the Securities and Exchange Commission. Accordingly, such statements should be considered in light of these risks. Any prediction by Hill is only a statement of management's belief at the time the prediction is made. There can be no assurance that any prediction once made will continue thereafter to reflect management's belief, and Hill does not undertake to update publicly its predictions, whether as a result of new information, future events or otherwise.
(HINT-G)
Contact:
Hill International, Inc.
John P. Paolin, 856-810-6210
Vice President of Marketing
johnpaolin@hillintl.com
or
The Equity Group Inc.
Devin Sullivan, 212-836-9608
Senior Vice President
dsullivan@equityny.com
KTCC + SMTX potentially important developement:
if SLR deal doesnt go through, SMTX and KTCC could be alternate targets for FLEX imho
Solectron Corp. (SLR) said Wednesday that a purported class action lawsuit
has been filed seeking to stop the proposed merger between the company and
Flextronics International Ltd. (FLEX).
The suit, filed June 4 in Superior Court of California, County of Santa
Clara, alleges breach of fiduciary duty of Solectron's directors.
HINT: 2x normal volume today on slight move up; volume precedes price movement.
HINT: CONTRACT NEWS: Hill International Selected by Barwa as Project Manager for Luxury Mixed-Use Development in Qatar
Wednesday July 11, 9:40 am ET
MARLTON, N.J. & DOHA, Qatar--(BUSINESS WIRE)--Hill International (Nasdaq:HINT - News), the worldwide construction consulting firm, announced today that it has been awarded a contract from Barwa Real Estate Co. Q.S.C. to provide project management services during the construction of Barwa's Ur Street mixed-use development in Doha, Qatar. The 30-month contract has an estimated value to Hill of QAR 21.6 million ($5.9 million).
The Ur Street development consists of two luxury mid-rise towers which will include commercial, retail, residential and hotel facilities on a 150,000-square-meter (1.6-million-square-foot) property. The development is being conceived by the renowned French designer Philippe Starck. Villa Moda, a well-known luxury retailer, will be the anchor retail tenant.
"Hill has extensive experience building mixed-use facilities in the region," said Raouf S. Ghali, President of Hill's Project Management Group (International). "I am confident that we will help our client achieve success on this project," Ghali added.
Hill International, with 1,500 employees in 70 offices worldwide, provides program management, project management, construction management, and construction claims services. Engineering News-Record magazine recently ranked Hill as the 10th largest construction management firm in the United States. For more information on Hill, please visit our website at www.hillintl.com.
This press release may include certain statements that fall within the definition of "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties, overall economic and market conditions, competitors' and clients' actions, and weather conditions, which could cause actual results to differ materially from those anticipated, including those risks identified in Hill's filings with the Securities and Exchange Commission. Accordingly, such statements should be considered in light of these risks. Any prediction by Hill is only a statement of management's belief at the time the prediction is made. There can be no assurance that any prediction once made will continue thereafter to reflect management's belief, and Hill does not undertake to update publicly its predictions, whether as a result of new information, future events or otherwise.
PXG worth a MAXIMUM of $99.0 million over a 5 YEAR PERIOD. Annualized that is around 20 mil added to their 140 million revenues if maxes out. This addition to revenues seems to be covered by today's move IMHO, and that is IF they can max it out for 5 full years.
HINT, perfect small cap sympathy to FWLT, ENR magazine rated them HIGHER than Foster Wheeler and KBR for top program managers of 2007.
http://enr.construction.com/people/topLists/topProgMgr/topProgMgr.asp
HINT: perfect sympathy to KBR with lower p/e and micro float
KTCC (SMTX sympathy) getting a bit more active last couple days, looking for a previous high test (5.80) shortly
SMTX - booked 3/4 worth of 100%+++ gains congratulations to all who played along
Xenonics issues Q3 outlook, sees Q3 revs below expectations
CEO says, "Response to the SuperVision launch has exceeded our expectations. We now have recruited manufacturer's representatives in all 50 states to service an Authorized Dealer network that today numbers 93 retailers, including Bass Pro Shops, Cabela's and other leading national sporting goods dealers as well as major accounts in public safety and other vertical markets. Later this month we will present SuperVision at the annual Nation's Best Sports (NBS) Show in Ft. Worth, one of the industry's most important trade shows. Our national advertising campaign in Popular Mechanics, National Rifle Association member magazines, Law and Order magazine, and other targeted publications is also stimulating interest in our proprietary digital low-light viewing system. We have fully resolved a vendor supply issue that caused SuperVision production to fall below our plan in May and early June, and production has now ramped up to our targeted pace. While we currently expect third quarter revenue to be below our prior expectations, we anticipate significant growth beginning in the current quarter as SuperVision shipments accelerate."
more on HINT: Federal government fiscal year budget recycles on Oct 1st. They need to spend all outstanding funds by then or risk losing them in next year's budget. Look for more federal contracts pr's from HINT in the immediate future imo.
HINT DD:
taken from another site:
TYPE OF PLAY: VALUE/SECTOR STRENGTH/TECHNICAL ANALYSIS
Quick Facts:
*Added to the Russell Microcap Index on June 26th,2007
*Trailing P/E ratio ~17 whereas industry peers trade at much higher P/E's: PCR (P/E 29), JEC (P/E 29), FWLT (P/E 38), KBR (P/E 24)
*Global presence and active contracts with a particular presence in Iraq
*Wells Fargo owns 8% of the stock in their funds
*~25 % short interest (yahoo statistic)
*PEG ratio of 0.85
Founded in 1976, Hill International is the largest independent construction management (CM ) firm in the United States. They are also the largest constructions claims firm in the world. With over 1500 employees and 70 offices worldwide, they offer construction consulting and support services from preconstruction through delivery. They were ranked 3rd Fastest-Growing A/E/C Consulting Firm in the United Kingdom by Building Building Website and on June 11th, featured with a cover story by ENR Magazine, Story Link. This issue also ranked them #10 (higher than KBR) in the Top 100 Construction Managers-for-fee category Story Link, and #9 on Top 100 Program Manager 2007 list above FWLT and KBR Story Link.
Recent developments
EARNINGS:
On May 14th, Hill International reported that revenue for the first quarter of 2007 rose to $62.9 million, an increase of 71.0% from the first quarter of 2006. Total backlog for the first quarter of 2007 increased to $257 million. Twelve-month backlog at the end of the first quarter of 2007 grew to a record $134 million. Aside from the robust quarterly numbers, Hill's Chairman and CEO commented: "We intend to build upon this strong performance during the remainder of 2007 and beyond." The conference call was very upbeat and mentioned margin expansion in the future. We note that Hill's top line has grown at a compounded rate of more than 20% per year for the last five years which indicates a sustained growth trend rather than one-time results. Furthermore, we are impressed by their revenue mix which includes federal, state, local, regional and even foreign government contracts. They have expanded into these areas while maintaining core private sector contracts as the majority.
NEW CONTRACTS:
Since the last quarterly earnings report, Hill International has continued to procure new contracts consistently. On May 21st, the joint venture of Hill International, LiRo Engineers, Lemley International and HDR received a contract from the New York Metropolitan Transportation Authority to provide construction management services during extension of the No. 7 Subway Line in New York City. Story Link
On May 23rd, they were awarded a contract to manage the construction of major road, highway and bridge projects throughout Serbia.Story Link
On May 24th, they were awarded significant new task orders to provide construction management support services in connection with the Iraq Reconstruction Program.Story Link
On May 30th they received a contract from Abu Dhabi National Hotels Co. to provide project management services during design and construction of a new 5-star hotel and beach resort located in Abu Dhabi, United Arab Emirates. Story Link
This mix of contracts displays not only their expertise in gaining new business consistently but is also indicative of the extensive mix of projects and geographic reach which will sustain their currently high growth rate in the future.
ACQUISITIONS:
In September 2006 they completed the Knowles acquisition giving them a strong foothold in Europe. Note that this is accretive to earnings going forward.
The recent acquisition of KJM KJM Website Link was effective May 1 2007. This company will give Hill a strong presence in the Western United States that they had previously lacked. At a bargain price of just over $9 million in cash and restricted stock, they gained a profitable arm in a needed area that is generating over $16 million in revenues and will be immediately accretive to earnings.
INDUSTRY:
Despite the slowing housing market (which Hill International has virtually NO exposure to), industrial spending continues to be growing worldwide and is expected to continue. The global industrial market continues to be extremely large with $4.6 Trillion in 2006 Worldwide (Estimated). Program/Construction Management Fees for ENR's Top 100 U.S. PM/CM Firms were up 18% to $8.7 Billion in 2006, from $7.4 Billion in 2005.
Technical analysis
From a technical standpoint, the stock has been in a gradual uptrend since May and a longer term uptrend since August of 2006. It has worked its way up over the 50 day moving average and has been establishing a solid base to advance from. Importantly, the RSI remains strong and Stochastics are in the middle of their ascent higher
More about the company
The Richter family, which runs the company, continues to hold over half of the company's outstanding shares. This insures that they have a vested stake in shareholder value as well as the company's growth. Anyone who is interested in Hill International should definitely look at the vast assortment of projects summarized and sorted by industry on their website: HINT projects page
Links for further reading:
HINT homepage
SEC filings for HINT
General HINT statistics
re: SMTX MSGI: I am still posting positive on the stock!!!
RE: Hweb2;SMTX I have seen stocks make insane moves when the float has been taken by large money. I feel that SMTX is just reaching its fair valuation in these levels but has so much momentum that it can carry it higher. Obviously there is huge risk to hold a stock like this through earnings when expectations are already built in. I would say selling right before earnings is probably the safest idea then maybe buy back if they are solid. KTCC still in the early stages :)
MLR: reached new yearly highs today for the break-out looking for a test of the 30 area from early 2006 high
KTCC + SMTX are finally starting to get going. Been low p/e's forever and getting some respect! KTCC is still lagging but in due time as the new WA. State facility should benefit them going forward.
AOB: reminds me a lot of BBC
re: UVE I personally missed this one but I would love to see a hurricane come and scare a bunch of people out so I can buy.
KTCC/SMTX EMS PLAYERS: sector should really heat up JBL had a very nice move off their quarterly report tonight. Also that site did a profile on KTCC this afternoon, nice to have the fundamental crowd and the momentum crowd on the same stock group (EMS):
06-21-2007 KTCC - Key Tronic Corporation
CURRENT PRICE: $4.78
TYPE OF PLAY: VALUE/SECTOR STRENGTH/TECHNICAL ANALYSIS
Quick Facts:
*Price/sales ratio of 0.23 versus showing a severe discount to other industry peers such as Flextronics (NASDAQ: FLEX)
*P/E ratio under 11 with removal of any one-time gains for the previous 4 quarters
*Global presence with facilities in the United States, Mexico and China
*Consistently profitable each quarter
For the last several years, Key Tronic Corporation has been focused on becoming a leader in the lucrative electronic manufacturing services (EMS) market. This specific sector is in a strong growth trend that shows no signs of slowing. The rate at which many industries are moving towards outsourced manufacturing has even been the subject of national debate over the last decade. Electronic Trend Publication estimates that the worldwide EMS market is expected to grow from $195 billion in 2006 to approximately $244 billion in 2008. Accordingly, there are significant opportunities for well positioned companies.
Recent developments
EARNINGS:
Revenues for the first 9 months of 2007 came in at $152.6 million, up 13% from $135.2 million in the same period of 2006. Current expectations are for $200 million throughout the full year 2007. It is important to note that they also managed to reduce inventory levels to 35.3 million from 39.3 million in previous quarter. During the recent 3rd quarter conference call, the company speaks about new customer programs that started in the previous quarter {Q2} adding 6% of their 3rd quarter revenue, citing their continued ramp up. Two new customer programs added to the 3rd quarter revenue stream with an additional four new programs slated to start in the 4th quarter. A key point taken from the conference call is that margins are expected to further improve in the upcoming quarters.
NEW CONTRACTS:
Last month, Key Tronic entered into an agreement with Imation Corp (NYSE: IMN), a worldwide leader in removable data storage, and is expected to contribute approximately $20 million to Key Tronic's annual revenue. This contract is approximately 10% of the current yearly revenue and accordingly represents a significant advancement to forward growth.
FACILITIES:
A new SMT production line became operational at the Spokane Valley headquarters within the latest quarter. This facility will provide rapid response, new product introduction process, prototype production, low-volume and highly specialized PCB assembly for programs that require domestic sourcing. Although this initially put temporary pressure on margins, the company has stated that it will begin producing revenue in the current quarter. This of course directly exposes Key Tronic to new clients as well as increased business from existing customers.
On May 11, 2007, Key Tronic announced that it closed the sale of its Las Cruces, New Mexico facility. This will bring in approximately $4.3 million dollars in the next quarter. ($2.8 million in cash and a $1.5 million note).
INDUSTRY:
It is also important to note that Flextronics International Inc. (NASDAQ: FLEX) entered into a definitive agreement to acquire rival, Solectron Corp. (NYSE: SLR) for $3.6 billion. This clearly tells us that companies are seeing the value within their own sector and indicates a trend towards further industry consolidation.
Technical analysis
From a technical standpoint, the stock has been in a gradual uptrend since February. It has worked its way up over the 200 day moving average while simultaneously establishing a solid base to move advance from. Importantly, the RSI remains positive yet not overbought. Additionally, the chart displays the presence of several unfilled gaps in the $5.50 and mid $6.00 ranges.
Chart Courtesy of http://www.stockcharts.com>
More about the company
Key Tronic Corporation provides a range of services that currently include: engineering, manufacturing and assembly, materials management, as well as in-house testing. Core strengths of note are innovative design and engineering expertise in electronics, mechanical engineering, and precision plastics. These are combined with high-quality, low-cost production and assembly services on a global basis. This global presence is maintained with distribution from its facilities in the United States, Mexico and China. This provides Key Tronic customers with both logistical and material procurement flexibility, yet allows the company to remaining highly cost competitive.
These customers comprise some of the leading original equipment manufacturers, including Clorox, International Gaming Technologies, Lexmark, Qualcomm, Transaction Printer Group and Zebra. Key Tronic's In recent periods, the company has taken specific steps to expand the core capabilities of its facilities in both Mexico and China which has given them the ability to offer a greater range of capabilities, competitive pricing, global logistics and enhanced customer service.
SMTX mentioned the late day buying Friday, 2 days later we are hitting multi-year week highs on increasing volume. Anyone besides me in this still?
XWG: have been reading posts for a while regarding Iphone roll out and the benefits XWG may see from it. The way the timing is, they wont see any benefit in the next reporting quarter. If the next report is anything like the last one, I think you can probably pick up some cheaper for the following quarter that may have the Iphone factored in it. Commentary from management was less than inspiring last quarter, and a lower headline on the next earnings may give a few some initial shock and put the stock cheaper to pick it up for the next quarter. You also have FORD reporting earnings that can also wreck any sector momentum in either stock with a bad report (non-Iphone). Just a few thoughts from me since it seems to be an active stock on this board. Good luck to all.
ASTE: DD posted previously, this gem hit multi-year highs today on almost 3 times normal volume.
SMTX: Burst of late day volume today leads me to believe that something is coming next week. Here is the chart:
MLR: great chart good year over year growth. worth a look for those looking for a new position in a niche business
HSOA: seems to me that if anything that citron said was maliciously incorrect HSOA could sue them for the market cap lost by the report, which would likely put the lemon out of business. but obviously they haven't sued them since the first lemon article so..... Absolute truth great defense against slander.
lentinman re: RACK; I posted it in reference to SMCI because it was one of the "server group" that i was eluding to that also gapped up, sorry for the mix up.
Note: i am only replying publicly since I can't do a private reply to your message.
SMCI: also highest volume ever today :)
SMCI more news: Supermicro Launches SuperBlade(TM) at Computex 2007
Tuesday June 5, 3:40 pm ET
Leading Density, Performance, and Efficiency
TAIPEI, Taiwan, June 5 /PRNewswire-FirstCall/ -- Super Micro Computer, Inc. (Nasdaq: SMCI - News), a worldwide leader in application optimized, high performance server solutions, today announced the launch of its new SuperBlade(TM) product line at Computex Taipei 2007, Hall 1, booths C901-C906. Supermicro's Server Building Block Solutions® provide versatile configuration flexibility for the enterprise, datacenter, high performance computing (HPC), and office computing markets. The SuperBlade architecture supports current and next generation processors at all speeds. The first Supermicro dual-processor (2P) blade servers support both quad-core and dual-core Intel Xeon(TM) processors.
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Compute Density: The SuperBlade 7U enclosure holds ten 2P or 4P compute blades in any combination and the architecture supports both quad-core and dual-core CPUs across all speed grades. Six SuperBlade enclosures fit into a 42U rack. This allows incredible scaling to 160 CPU cores per 7U enclosure or 960 CPU cores per rack. A 14-blade configuration is coming soon.
Performance: In addition to outstanding CPU performance-per-watt benefits, the SuperBlade features multiple integrated switch fabrics to optimize I/O performance and connectivity. High-speed, low-latency infiniband switching (20Gb/s per port) is ideal for clustering applications while two 10-external-port GbE LAN switches provide optimum network connectivity.
High Efficiency: Earth-friendly, high-efficiency (90%+) power supplies and superior cooling significantly lower the total cost of ownership (TCO). 2,800W to 7,500W redundant (n+1) configurations provide high availability and flexibility.
Ease of Use: Up to 90% cable reduction and 50% rack-space savings greatly simplify installation while saving cost and increasing reliability. The integrated chassis management module (CMM) with IPMI 2.0, KVM-over-IP, and Virtual-Media-over-LAN provides remote access to all compute blades, switches, power supplies, and cooling fans.
"Our SuperBlade(TM) designs implement the very latest advancements in server technology, making them not only perfect for enterprise applications, but also ideal for HPC, data centers and office computing environments," asserts Charles Liang, CEO and president of Supermicro. "Taking modular computing to another level, our high-density blades can be optimized for a wide range of applications with exceptional scalabililty."
When equipped with Quad-Core Intel® Xeon® processor 5300 series, Supermicro's SuperBlade can provide its customers with unprecedented new levels of performance and flexibility. "The breakthrough performance per watt of the Quad-Core Intel Xeon processors helps enable Supermicro's innovative SuperBlade server to deliver outstanding energy efficiency," said Diane Bryant, Intel vice president and general manager of Intel's Server Platforms Group.
The Supermicro 2P blades support two/six SATA/SAS hot-plug hard drives. Customers have the option to choose either 2.5" or 3.5" hard drives. Up to 640GB of memory is supported in a 7U enclosure using cost-effective 4GB DIMM modules.
For detailed information on Supermicro's complete range of application-optimized Server Building Block Solutions®, please visit http://www.supermicro.com.
About Super Micro Computer, Inc.
Established in 1993, Supermicro emphasizes superior product design and uncompromising quality control to produce industry-leading serverboards, chassis and server systems. These mission-critical Server Building Block solutions provide benefits across many environments, including data center deployment, high-performance computing, high-end workstations, storage networks and standalone server installations. For more information on Supermicro's complete line of advanced motherboards, SuperServers, and optimized chassis, visit http://www.Supermicro.com, email Marketing@Supermicro.com or call the San Jose, CA headquarters at +1 408-503-8000.
even more on SMCI:
sorry i didnt see this pr earlier and get it in last post!
Supermicro Launches New Motherboards Optimized for Intel(R) Core(TM) 2 Processors
Monday June 4, 2:38 pm ET
High Volume C2SBE and C2SBA Deliver Increased Performance and Energy Efficiency
SAN JOSE, Calif., June 4 /PRNewswire-FirstCall/ -- Super Micro Computer, Inc. (Nasdaq: SMCI - News), a leader in high-performance systems, today announced the availability of two new motherboards based on Intel's new P35 and G33 chipsets. Optimized for Intel Core 2 Quad and Duo processors, these solutions provide the performance of today's 65-nm technology, as well as support for the next generation of 45-nm processors.
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"The increased performance, high power-efficiency and cost-effectiveness of these new desktop boards make them ideal for mainstream, high-volume systems," notes Charles Liang, President and CEO of Super Micro. "Our strength in quality and design enables us to lead the transition to these feature-rich desktop platforms."
Featuring a new 1333 MHz system bus, the C2SBE is based on the Intel® P35 chipset and supports one Intel Core 2 Quad or Duo processor in an LGA 775 socket. Outstanding support for legacy devices is provided by four 32-bit PCI slots. Other impressive features include support for up to 8 GB of DDR2-800 memory, three PCI-Express x16/x4/x1 slots, four SATA ports, high-definition 7.1 channel audio, and an Intel Gigabit LAN controller. Six of the twelve USB 2.0 ports are accessible to the user on the system back panel.
The high-performance C2SBA, based on the Intel® G33 chipset, comes equipped with identical features, but also includes the Intel GMA 3100 graphics engine with Windows Vista support. TPM1.2 security support and dual IDE controller options are also available.
Both the C2SBE and C2SBA are based on the ATX form factor (11.6" x 9.6") and optimized for Supermicro's SC733T-645 and SC733i-645 mid-tower chassis. The C2SBE and C2SBA are fully RoHS compliant (6/6). SuperDoctor III management software is included for both platforms.
Supermicro Server Building Block Solutions® offer exceptional flexibility and outstanding feature advantages. For more information please visit http://www.supermicro.com.
About Super Micro Computer, Inc.
Established in 1993, Supermicro emphasizes superior product design and uncompromising quality control to produce industry-leading serverboards, chassis and server systems. These mission-critical Server Building Block solutions provide benefits across many environments, including data center deployment, high-performance computing, high-end workstations, storage networks and standalone server installations. For more information on Supermicro's complete line of advanced motherboards, SuperServers, and optimized chassis, visit http://www.Supermicro.com, email Marketing@Supermicro.com or call the San Jose, CA headquarters at +1-408-503-8000.
SMCI-F
another note on SMCI:
I was reading through the 10q and saw this, I am not 100% positive but I believe Delaware has 0 state tax which should help them going forward since it just happened, any input on the this would be appreciated:
Super Micro Computer, Inc. was incorporated in California on September 28, 1993 and reincorporated in Delaware on March 19, 2007. As a result of the reincorporation, the condensed consolidated financial statements have been adjusted to give retroactive effect to the establishment of par value for Super Micro Computer’s common stock. Super Micro Computer develops and provides high performance server solutions based upon an innovative, modular and open-standard architecture. Super Micro Computer has wholly owned subsidiaries in the Netherlands and Taiwan.
some DD on SMCI:
TYPE OF PLAY: VALUE/GROWTH/UNDISCOVERED
* Super Micro Computer has been in business since 1993 and achieved profitability every year since inception.
* Price/Sales Ratio is ~ .76, showing a severe discount to other companies with similar server offerings such as HPQ (p/s 1.26), DELL (p/s 1.4), RACK (p/s 1), SUNW (p/s 1.3).
* 39% year over year revenue growth with an extensive customer base. No single customer accounts for more than 10% of their business, which indicates revenue stability.
* The single analysts currently following it (Needham), maintains a buy rating with a $14.00 price target. Merrill Lynch and UBS were also part of the IPO underwriting team with Needham, and could initiate coverage of the stock at any time. Additionally, the low institutional ownership reported most recently, indicates they would have to buy in as growth continues. This situation presents the classic case of a very stable and expanding company that simply lacks coverage. These are precisely the types of opportunities we look for.
* Three new and innovative product offerings: SuperBlade(TM) servers, the 1U Twin(TM) server (recognized for the excellence of innovation by Intel), and the newly defined Universal I/O(TM) (UIO) architecture for optimized storage and networking flexibility. Their SuperServer 5015M-MR also earned the top honor from CRN 2006 Products of the Year in the Server category. * The CEO owns a substantial amount of the outstanding shares, which gives an added incentive for the company's stock to perform.
* Future plans for assembly/production in China which should cut costs and expand margins accordingly.
Super Micro Computer's products are based on processors from Intel Corp. and Advanced Micro Devices Inc. and can run on the Linux and Windows operating system. This gives it the flexibility for any customer to implement with their preferred chip vendor and operating system.
The company has also begun to shift their product mix more toward the higher margined server offerings. Their new products should continue to enhance this shift and add to the bottom line.
They are very active in promoting the benefits of their offerings and becoming a public company further solidifies the confidence that is instilled in potential customers. They will be presenting at Computex Taipei 2007 in Taipei, Taiwan on June 5th - 9th .
Super Micro Computer emphasizes superior product design and uncompromising quality control to produce industry-leading serverboards, chassis and server systems. These mission-critical Server Building Block solutions provide benefits across many environments, including data center deployment, high-performance computing, high-end workstations, storage networks and standalone server installations.
SMTX is sympathy: FLEX BUYS Solectron for nice premium:
Flextronics to acquire Solectron in $3.6 billion deal
By Mike Maynard
Last Update: 6:48 AM ET Jun 4, 2007
WASHINGTON (MarketWatch) -- In a deal that would combine two contract manufacturers of electronic devices, Flextronics International Ltd. has agreed to acquire Solectron Corp. the companies said. Shareholders of Solectron will receive total consideration valued at about $3.6 billion, based on the Friday closing price of Singapore-based Flextronics' ordinary shares. The buyout price represents a premium of some 20% over Solectron's closing price of $3.37 on June 1. Stockholders of Milpitas, Calif.-based Solectron can receive 0.3450 share of Flextronics or a cash payment of $3.89 for each of their shares, with a limit of 70% pegged on the aggregate amount of Solectron shares that can be converted into Flextronics stock. Upon completion of the deal, Solectron will become a wholly owned subsidiary of Flextronics, and Solectron shareholders will own between 20% and 26% of Flextronics' outstanding shares. "It could take up to 18 to 24 months to fully integrate this acquisition and realize the full synergy potential, which we estimate to be at least $200 million after-tax," said Thomas Smach, chief financial officer of Flextronics. The deal "should be at least 15% accretive" to Flextronics' earnings per share once all synergies are realized, he added. A combined Flextronics-Solectron would have annual revenue of more than $30 billion
ASTE : pretty nice stock that was riding the 50 day moving average up after a pullback, On Balance Volume remained strong throughout the dip and RSI is heading back to the positive range. Also has some potential here for rebuild business if any bad hurricanes come through. Little bit of an angle on recycling as well. They did .69 EPS last quarter and claimed business was strong. 13 million float makes it easy to run by large firms.
SMTX (jackshot) Todays volume and gap up was largely unexpected my most (including me) but between institutional investors, insiders, and the volume over the past week or so, there isn't many shares left out there. People are more willing to hold because the fundamentals support this price (and frankly much higher prices). As to the 5 this week, I think it is possible but I would rather see it step up a bit slower so it can build off each level and go ultimately higher in the end.
SMTX- gap and go on big volume, congratulations to all of us :)
SMTX(jackshot). I think they mentioned on the conference call that the new facility would be on line in the 2nd half of this year. Here is a link if you feel like listening: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1852400
SMTX: your guy's estimates seem pretty reasonable and even if they are a little aggressive, it is clear that under 5 dollars this company is undervalued. Something that I didn't see you mention was the new facility coming online soon, this will HOPEFULLY increase the margins a bit, and with that kind of sales power and size of the float, any decrease in expenses will hit the bottom line nicely. Good luck to everyone, I think we have a gem.
SMTX - Yearly highs today but I do not see any posts on it here today. Is this considered 'value' at this price? P/E seems to be lower than most.
RFIL DD (plagerized but helpful)
* 19% revenue and 110% EPS growth year over year reported last quarter
* Strong sales of new connector and cable products
* Margin increases and expense cuts leading to record earnings in the past 3 and 9 months
* Approximately $7.2 million cash on hand ($2.25 per share) and 0 debt on the balance sheet
my own comments:
I also really like the spike up after last earnings, the pullback after gives everyone a chance to load up prior to the next earnings spike (hopefully up like last time) Either way the company seemed upbeat when I phoned them (not that this is any reliable indication) I suggest all do the same if they come up with any question. Please share with the board also if you find out some good information :) Number: 858-549-6340