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0dd Lot, I agree with what you said. Some of the business losses were just attrition, and assuming they don't lose any other large customers, perhaps this is finally the bottom. But I can also understand why people are taking a wait and see approach, there have been so many false starts since the big decline, the sidelines are probably going to get a bit crowded.
Loss of 2 cents, much better than last year, but I had thought that they would have a small profit. You might be right about needing a year to get their act together, and expenses in-line.
Yup, my portfolio is one of many cuts.
Nice thing about this is that it doesn't take much in revenue divided by a minuscule number of shares to move the needle. The 10Q should be enlightening.
OTTR had a great day. Nice to see you on two boards of stocks I own.
RGCO had a nice earnings report. Too bad it hit on a down day, but things looked good to me.
Sellers only have so many shares to sell, buyers have an unlimited amount of money to buy. Eventually, this will catch some eyeballs as it is in the right industry with the right prospects, all IMHO.
Keepin' the faith for new highs.
Thanks for the color you provided. The buying thesis remains intact for me, I just wish the selling would end. A lot of stock got dislodged with that big seller, once that is digested (I thought it would have by now), I think we creep higher.
Congratulations on getting yourself some well deserved press exposure Mike.
Interesting watching is all. Right now it seems it is pictures and comments on a corporate website vs. officers' past history.
A true corporate smack-down.
Bueller...? Bueller...? Someone tell me what happened here? Anyone? Anyone?
'genlou' the AFBA annual report has a paragraph about there being the possibility of a capital raise of about $6MM through an investment bank, provided that the holding company receive a discount on TARP, plus some regulatory approvals, (see page 14 of the AFBA annual report). That could be very meaningful to the bank's future, and hopefully rewarding to all shareholders. IEBS was trading around 35 cents when they came up with a capital raise at 80 cents per share. The stock moved to over 2.20 per share soon thereafter. Trades now around 18 cents, I think because the bank got off track with electronic payment business venture. But the company also offered all shareholders rights to buy more stock at the same price that the investors did at 80 cents, so it was a sweet deal at the time.
CYHC is the 15,000/share bank. Only own 1 share, but it pays a fat dividend of $250 per quarter, so a nice yield.
Also own PTBS, PNBI, FKYS, UBPC for dividends. Though I sold to early, I also owned another stock (have to look at the symbol) that was trading for 40 cents and rocketed to about $10 (could be even higher now).
I rarely sell stocks that I buy. I think there are plenty of opportunities in these beat down stock and sooner or later, the not-so-geniuses on Wall Street will catch on to the risk/reward here.
Genlou,
I own several banks, one trading at $15,000.00 per share, and a few others all the way down in price to this. CCFH looks interesting, I'll look closer into that and follow you on that board.
A few of these sub $1 stocks have done wonderful for me. Once they fall below $2, most on Wall Street want nothing to do with them, until the insiders get their act together and clean up their books. While I usually keep clear of stocks with PFD stock in them, in the case of AFBA, the common stock outstanding is so low it is way to compelling.
These stocks are very speculative at this point, so you are wise to diversify if this is the area you are looking at investing. I do believe in wealth concentration to build wealth quickly, so if you find a nano-cap stock like AFBA, not only might you be concentrating your funds, you are also concentrating you % of ownership in the company at the same time. Of course, it could mean the entire loss of every cent of your funds if you do that. It has worked well for me.
The 200 share trade did light up my portfolio's numbers. There was like 23k shares offered at 84 cents at the end of the day. Perhaps someone that got just under 5% of the outstanding on the cheap and wants a good percentage flip?
Might be time to call the CEO and have a background chat, or find out if anyone knows who maybe interested in selling all of that. If I had just a bit more confidence in the company's future, it would be nice to be able to snap up a huge block like that in one big swallow, especially since it is so cheap. Tough decisions.
I missed this when it was so much lower, but had to get some, albeit a small few hundred shares. You are right, this company is hitting it.
In addition to what you already stated, I love the fact that this is a company that told AMZN to stick it, and did so much better on their own. Good for them, maybe other companies will stop selling their soul to the Walmart's and the AMZNs and improve their margins instead of flooding their product at the arm twisted lowest price.
Wasn't as bad as I would have feared. There remains the 5% holder from Illinois, and they have picked up some business during the year:
"To partially offset the loss of MPN revenue during 2015, we added one new customer in April 2015 and five new customers in July 2015". The loss of AmTrust will be fully felt next quarter, so that will hurt.
Company has about 10X more cash than liabilities, and no long term debt, so zero risk of bankruptcy for the foreseeable future, and book value is around $6.40 per share.
If they don't lose any more clients, and can gain some, I think though the stock might tread water next year, there is hope long term, either as a stand alone or as take over bait for someone else. All my very unprofessional opinion of course.
Agreed! Lots of leverage for each dollar invested. Great for the wait and seers'.
I saw that :). Sometimes an annual meeting and reports will help management clarify their mission. For what you can buy an option for, you can get an even bigger return if things work out. If not, the risk is about the same, only AFBA doesn't have an expiration date. Hope I'm right, I think they can make this work.
Got my proxy and voted it today. Was hard to know whether it would be worth going to the annual meeting or not, but I live too far away.
Crazy anyone could be a 5% large common stock holder for less than $13k. If it dips, I may consider it, as I'm not far from it now.
10K is out.
Tucked in the 10k is this note about expanding:
On March 27, 2016, the Company executed an agreement to purchase the land, building and fixtures of a facility located in Hopkins, South Carolina for a purchase price of $1,550,000. The facility is located on 39 acres of land and has approximately 40,000 square feet of production space. The closing of the purchase is subject to certain conditions, including a satisfactory appraisal and an environment study. The purchase will be financed by a new 10 year term facility, pursuant to a commitment letter, with the Company's current bank in the amount of $1,240,000 with the balance being provided from the Company's cash resources.
PRESS RELEASE:
Smith-Midland Corporation (OTCQX: SMID) announced that the Company reported total revenue of $29.2 million for 2015 compared to $22.5 million for 2014, an increase of $6.7 million, or 30%. The Company reported pre-tax income of $1.6 million for 2015 compared to a pre-tax loss of $1.3 million for 2014, an increase of $2.9 million. The Company reported net income of $1.1 million, compared to a net loss of $804,839 in 2014, an increase of $1.9 million. The basic and diluted income per share was $0.23 for 2015 while the basic and diluted loss per share was $0.16 for 2014.
The Company reported fourth quarter revenues of $7.7 million for 2015 compared to $4.4 million for 2014, an increase of $3.3 million, or 75%. The pre-tax income for the fourth quarter of 2015 was $304,760 compared to a pre-tax loss of $998,773, an increase of $1,303,533. The Company had net income for the fourth quarter of 2015 in the amount of $250,760 compared to a net loss of $618,773 in 2014, an increase of $869,534.
Rodney Smith, Chairman and CEO, stated, "I am pleased to report that the Company had another positive quarter for the three months ended December 31, 2015 as well as a very profitable year for 2015 as suggested in my earlier press releases of 2015. It is personally gratifying to me that we were able to deliver on our projected increased profitability and that the Great Recession is largely over for Smith-Midland.
"As always, we continue to look ahead to the future of the Company and what to expect for 2016 and beyond. As most of you are aware, a $305 billion, five year highway bill was passed by Congress and signed by the President giving some added stability to highway work. For Smith-Midland and our nationwide network of Easi-Set Worldwide licensees this allows us the opportunity to quote on an increasing list of highway projects. We currently have seven soundwall projects in production or waiting to start production in the near future. These projects as well as our other projects in progress should keep us profitable for the remainder of 2016."
Smith-Midland develops, manufactures, licenses, rents, and sells a broad array of precast concrete products for use primarily in the construction, transportation and utilities industries.
This announcement contains forward-looking statements, which involve risks and uncertainties. The Company's actual results may differ significantly from the results discussed in the forward-looking statements. Factors which might cause such a difference include, but are not limited to, product demand, the impact of competitive products and pricing, capacity and supply constraints or difficulties, general business and economic conditions, the effect of the Company's accounting policies and other risks detailed in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.
For more complete information on Smith-Midland Corporation, visit the Company's web site at SMITHMIDLAND.COM. The "Investor Relations" area will include the Company's Form 10-K
Only traders care about volume. Investors can see value through the noise. More clarity in a few days, IMO.
You're welcome. Are you still bullish on AFBA? I think they have a chance of survival if not thrive if they can scale their business out. Dollar for Dollar, share for share, you get a lot of equity for very little, served with a big helping of risk, for sure.
Mike, great article about cash. Seems your experience has taught you well. One of the oldest and best professions is that of a pawn broker. They get great discounts because they have the cash to take advantage of those opportunities. Investing in stocks is much like that. Your paragraph about being fully invested is right on the mark. I don't know how many people complained that they couldn't buy X because they couldn't get out any of their positions in A through W. Thanks for your insights!
Eight and a half bid? Is that bid in dollars or turkeys??
Thanks again for your analysis. Very interested in how this ultimately plays out.
Thanks for the fast reply! I was confused by the need for core drilling on a placer mine from what I was reading on the internet. Lode = vein, placer = gravel/deposits more or less. What you say makes sense.
Forgive my ignorance, but is someone said that they have a placer permit? Wouldn't core drilling imply more of a lode permit? I'm trying to analyze what they are able to do on this land. Thanks in advance.
or I could buy 1200 shares of an insanely diluted stock. I would have to pay about $120/year to keep the ebay lease, but the stock is more liquid. What to do...?
I'm going to bid on an ebay claim of 20 acres for $400, do I go with placer or lode?
I think we'll get to new highs once the market realizes how much potential is here and soaks up that stock that hit the market. Right industry, right company, right stock.
Really??
This is by far my favorite stock. The market gave people a great opportunity to by a quality defensive stock with a great dividend. The market can be stupid sometimes, but it doesn't mean that smart investors can't out maneuver it. I can wait, traders can't. Their loss, my dividends.
Interesting. Looks like the prior CEO should have made his move sooner, though the company is much cheaper than it was. Question remains whether he would get any backers to fund it. It also doesn't look like the company did well with managing their account receivables to take that much of a hit with a bankrupt company.
What a train wreck today.
There are 20 acre leases offered on Ebay all the time. Placer, lode, etc. I think it would all depend on the quality of the lease and the operators, and of course financing.
Article in SA. Nothing we haven't heard before, but as you said, generated some life. With small floaters, anyone can run up the price of them, but after they do, the question is, who do you sell it to?
Now that the revenue losses are through the snake, it will be interesting to see how they regroup and what growth they will find. I can't commit to it until I see that all the bad news it out, and that they find their stride again. Sure, I might miss out on a good rally, but there is something about buying a pig in a poke. I think it is undervalued, but have said that before at much higher prices.
Good luck all. Watching, not investing here, yet.
Earned 43 cents last quarter. Negative book value is an issue, but a market cap just north of $500k seems crazy cheep even with the risk. Bid 50 cents offered a buck. Would like to see some insiders buying or something.
http://www.alliedfirst.com/home/fiFiles/static/documents/QuarterlyFinancials.pdf
With the comments here, I don't know which is more fake, my boobs or the permits?
Pictures are worth a thousand words, but in this case, not 1000 shares of this stock IMHO. They should have said at minimum that those pictures are not the actual property that they own, but only a representation. Let's see it on the site, and with the skeptics here, with the CEO holding a GPS showing them there.
Looks like the 10% shareholder is out. Not sure why they would sell at such a discount, but at least, they are out, and I'm in. Unless there is something they know that I don't, I'd say thanks for the deal!
What the dealio with the stock dump here?