Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
cleverrox: IPII
Earnings are due out by the end of the month. Q4 a bit of a wildcard given the aftermath of the hurricanes, but Q1 should be back on track. Q1 is already nearing a close, and those results are due out by mid May. Hopefully we'll also get an update on the Nasdaq listing application soon. It could happen at anytime, or Nasdaq may want to see the audited annual results before giving final approval. A Nasdaq listing should give a nice boost to the stock price.
sb: they've gotten a few 'courteous' replies, but nothing of great import. Check out the GFCI board on RB ...
http://ragingbull.lycos.com/mboard/boards.cgi?board=GFCI&startfrom=76
GFCI: posters on the Raging Bull message board are saying another announcement is due next week. At the very least, this stock could be a good one for trading. If it dips down too far, I'm going to double up on my small position.
GFCI: It sure has dropped like a rock since hitting $1 just after the open. Volume is huge too. Evidently a lot of stockholders are using the rally to jump ship. But NWAU also corrected before taking off. I bought it in the mid .40's in November, only to see it fall into the mid .20's in December, but now it's around $1.50, even without any SEC filings having yet been made. I'm still holding all my GFCI and will await developments in the coming weeks and months ... just fun money, of course.
otcbargains: I agree that NWAU's operations are probably legit, however I'm very skeptical about their huge profitability. I rather think they're 'cooking the books'. But maybe I'm being far too pessimistic. It will be interesting to see their SEC filings, when and if, they do ultimately file. It should be within a few weeks, but another postponement would come as no surprise to me. Looks like you were wise to flip your GFCI shares this morning for a quick 40% profit ... it's now back to even on the day. But the rollercoaster ride may go on for weeks to come ...
bones1420: GFCI
I won't be a bit surprised if GFCI turns out to be a scam, but at least it sounds more legit to me than NWAU.pk. Yet NWAU is the biggest winner on this board year to date. The only other two spectacular gainers ytd are ALMI and WGMGY ... who would have thought that a used car dealership without any SEC filings would gain 233% in 9 weeks ??? Probably NWAU is a scam, imho, yet it's made a lot of people on this board some nice profits. And it could still turn out to be the 'real deal'. But I only put 'fun money' into these types of stocks. But I sure wish I had put more serious money into NWAU !
________12/31_____3/3_____ytd gain
NWAU____.45______1.50______+233%
WGMGY__.62______1.74______+181%
ALMI_____.39______1.24______+218%
10 bagger: GFCI
Thanks for the info on key personnel ... it sounds legit ... here it is again ...
Management of new company....GFCI
Jim Dial - President
Jim Dial has a twenty year track record in the oil and gas exploration service industry, joining The Brandt Company in 1977, serving as Manager of Technical Services, Research and Development Manager, and Vice President Industrial Division. During his tenure, Dial participated in the acquisition of numerous companies both domestically and internationally. Since leaving Brandt, Dial has owned, operated and sold multiple private companies; presently, Dial is principal owner and operator of three business ventures.
Jerry Griffith - Director of Operations
Jerry M.Griffith was raised in an Oil Patch family, having served as a roustabout, roughneck and rig builder in his youth. After earning B.A. and graduate degrees, Griffith decided to return to the oil patch as a mud engineer for IMCO Services, a Halliburton company. IMCO was a springboard to a General Manager position in Lafayette, Louisiana with Hunt Oil Tool Company, where Griffith established Hunt as a worldwide distributor for shock tools and drilling jars. After 10 years with Hunt Oil Tool Company, Griffith started Grifco Inc. and Grifco International Inc. Griffith has designed several oil tools and received patents for use by coil tubing service companies. Grifco patents and trademark have an excellent reputation in the oil and gas industry. Griffith remains active in the day-to-day operations of Grifco, developing new tools and designs while maintaining a strong relationship with its worldwide clientele.
Mack Griffith—Mack has been with Grifco from inception, beginning as a shop hand and tool repairman, resulting in Mack’s involvement with tool design and manufacturing. With a complete knowledge tool inventory, Mack entered the field as a tool supervisor. Mack’s supervisor experience extended from the Gulf Coast of Mexico to Venezuela in operations at Grifco International de Venezuela, with frequent trips to Europe as a sales rep.
Doyle Eastep—Eastep has worked with Grifco in a sales and supervisory capacity for the past 12 years. Doyle headlined Grifco’s operation in Venezuela for 6 years prior to returning to the states as a sales rep. Eastep developed a vast knowledge of Grifco’s tool catalog while functioning as a supervisor and consultant. Doyle has some 22 years in the oilfield experience and is a graduate of Louisiana Tech University.
Wendell Taylor—Wendell Taylor has 26 years experience as a machinist. Wendell has manufactured tools for the drilling and production area of the oilfield. Since joining Grifco, Taylor has been responsible for all manufacturing and tool changes. Taylor’s is highly regarded by Grifco clients, and knowledge and commitment to quality is a great asset for Grifco International.
Bill Bellenger— Bill Bellenger spent 25 years with Halliburton Energy Services in a variety of management positions before joining Grifco International. Bellenger’s management skills and industry knowledge have been an integral part of formulating Grifco’s internal structure and company protocol.
nutsaboutgolf: ALDA
I've been in ALDA for a few months, now the second time around, with the feeling that the stock would come into play as golf season gets into full swing (when spring arrives for us Northeners). The earnings look good, as does the strong order rate through February. I think the stock has ways to run ...
lentinman: GFCI
Money is corrupt. Some people get paid 100x more for doing dignified work than others get for doing dirty work. GFCI could be a scam ... or maybe it's a genuinely undiscovered 'gem' that deserves a 10x higher valuation. Time will tell. But a slick PR job goes a long way. Heck, most of Wall Street seems convinced that certain companies that are chronically losing money, or others that have astronomic PE's, deserve huge valuations and market caps. That would seem to be just another type of delusion, or scam, depending on one's viewpoint. Scams and money go hand in hand. Maybe they are twins ?
IIIN, NWAU and VLXC were all pink sheet stocks boasting of huge EPS relative to share price. I had excellent profits in all 3, though I put by far the most money into IIIN, and my best percentage gainer was NWAU. VLXC I only held for about 2 days, but logged some good quick profits. IIIN turned out to be for real and now trades on the Nasdaq, NWAU is planning to file its SEC forms within the next few weeks, and VLXC seems to be a scam, though they're also promising to file audited results with the SEC. GFCI sounds too good to be true, but so did these 3 other pink sheet specials, but scam or no scam, they made me money ! I sure won't bet the ranch because thankfully I don't own one - I just rent a small apartment. GFCI could turn out to be for real, but even if it is a scam as some suggest, that doesn't preclude a big runnup on a lot of slick PR. I'm going along for the ride - time will tell whether that's up or down.
Knowledge: GFCI
Thanks for this one. They say they'll be fully reporting within a few months. This was a shell company acqusition/listing plan via LTBI to gain a quick listing. I like the gamble. I'm in. Here's the shell company acquisition announcement from November ...
LAFAYETTE, LA--(MARKET WIRE)--Nov 19, 2004 -- LitFiber, Inc. (Other OTC:LTBI.PK - News) (as of 11/19/04 symbol will be (OTC BB:GFCI.OB - News)) announces it has acquired Grifco International, Inc., a provider of oil and gas services equipment to the worldwide oil and gas industry.
Grifco International specializes in the conception, architecture, and development of tools for the coil tubing, wire line, and snubbing industry throughout the US, China, Mexico and South America. Grifco is the leading purveyor of jarring tools for the oil field in the world; Grifco's clientele of Fortune 500 and 100 companies, national oil companies, and supermajors includes the most recognizable names in the oil and gas industry:
Exxon Mobil Kerr McGee
Hydra Rig Varco B.J. Services
Halliburton Energy Services Pemex
Pdvsa Venezuela Wireline Specialties
Progressive Oil Tools Canada Shell
Coiltech Coil Tubing Services
ABC Nitrogen Cudd Pressure Control
Superior Pro Coil
Dowell Schlumberger Steward Stevenson
CNPC (Chinese National Petroleum Co.) Enmax China
Weafri Well Services (Nigeria) J and J international
Sonal Pedcor
PT Wasita (Jarkarta) Maersk Oil (Denmark)
Baker Oil Tool (Worldwide) Weatherford (Worldwide)
Venline (Venezuela) Petro Tech Coil Tubing (Mexico)
TriCan (Canada) Coil tubing Company Blowout Tools
Cavins Fishing Tools San Antonio Services (Argentina)
ACT (Action Coil Tubing)
Terms of Litfiber's acquisition of Grifco include a name change to Grifco International, Inc. to incorporate the Grifco business plan, a new symbol assigned by Nasdaq, and a 20:1 reverse split. NASDAQ has received everything necessary to effect the name change and reverse split for Grifco International, Inc. Effective at the market open on 11/19/04, the new symbol for Grifco International, Inc. will be GFCI (OTC BB:GFCI.OB - News).
As part of the acquisition, John Jarvis has tendered his resignation as CEO of Litfiber. Grifco International CEO Jim Dial will assume the role of Chief Executive Officer and President of Grifco International, Inc. Please note, Grifco International retains all Litfiber assets, including but not limited to telephony equipment, accounts, accounts receivable, contracts, Letters of Intent, representations, and agreements. John Jarvis will remain as a consultant to the company on telephony related matters.
A private company for over fourteen years, Grifco has become public in order to reflect earnings and profit through public dissemination and filings. Grifco has crafted a plan to acquire mid sized companies and competitors in the oil services field and align them horizontally in the Grifco service offering to create an oil and gas services conglomerate. Grifco's target acquisitions combine to reflect more than $50 million in annual sales.
Twelve years ago, Grifco engineered and patented a 2N1 (two directions in one tool) jarring system still employed and sold throughout the world. This 2N1 system was the first in the industry which allowed the operator to jar in both directions, as may be required, forever putting Grifco on the oil industry map.
LitFiber is a full service, engineering based, Fixed Wireless, Web Development and Telecommunications Company. LTBI combines expertise in wireless business communication systems, system integration, computer telephony software deployment, IP telephony, data networking with unparalleled customer service. Grifco feels the Litfiber telephony platform offers potential synergy with the extensive International client base of Grifco International, Inc.
Grifco International Inc. is a leading provider of oil and gas services equipment, specializing in the conception, architecture, and development of tools for the coil tubing, wire line, and snubbing industry throughout the US, China, Mexico and South America. Grifco's patented products are known and used throughout the world. In addition to our patented tools, Grifco designs and manufactures over 350 products for the Oil and Gas industry with a clientele boasting the biggest names in the business, including Halliburton, Exxon, and Schlumberger. Please visit www.grifco.org
patentlawmeister: SWTX
It certainly has come roaring back after the brief dip. The upcoming investor conference may be the reason, as well as the strong Q4. But I still think there's a good chance of a significant pullback ahead of the expected weak Q1 results. I'll be watching it for a potential re-entry point ...
CGIH has started trading on AMEX as THK
NEW YORK, March 3 /PRNewswire/ -- The American Stock Exchange® (Amex®) today listed the common stock of CGI Holding Corporation under the ticker symbol THK.
CGI Holding Corporation is a holding company for WebSourced, Inc., the worldwide leader in Internet-based marketing solutions for small businesses and large corporations. CGI, which is headquartered in Chicago, was incorporated in 1987, and was formerly known as North Star Petroleum, Inc.
"We are pleased to welcome CGI Holding Corporation to the American Stock Exchange," said John McGonegal, senior vice president of the Amex Equities Group. "We look forward to working with CGI Holding and providing them with the value-added resources a growing company needs to succeed in today's market."
"We greatly appreciate the professionalism and courtesy with which our listing application was handled by the American Stock Exchange officials and staff," said Gerard M. Jacobs, chief executive officer of CGI Holding. "This listing on the Amex will enable us to broaden our investor base and raise our profile among investors in the technology group."
PKZ reports strong results -
EPS of $1.49 for Q4 and $6.28 for the year, versus $1.09 and $3.90 the prior year - stock is around $43
Q4 EPS impacted negatively by about $0.42 due to temporary inventory build ups.
Reserves are large and growing with replacement of an impressive 180% of production for the year !
Company targeting 12% increased production in 2005. Share buyback continues along with increased dividend. It should be a banner year !
CALGARY, March 3 /PRNewswire-FirstCall/ - PetroKazakhstan Inc. ("PetroKazakhstan" or the "Company") announces its financial results for the three months and year ended December 31, 2004. All amounts are expressed in U.S. dollars unless otherwise indicated.
HIGHLIGHTS: - Record financial results; earnings up 58% over 2003 and cash flow up
40% over 2003
- Significant increases in oil reserves attributed to exploration
success and improved performance in the Kumkol and Akshabulak fields
- Reserve recognition of substantial Natural Gas Liquids and natural gas
- Exploration success in Kyzylkiya and Aryskum
- Increase of regular quarterly dividend to C$0.20 per quarter
- Shares begin trading on the Kazakhstan Stock Exchange
- Build up of oil and products inventories decreases fourth quarter
income FINANCIAL HIGHLIGHTS: -------------------------------------------------------------------------
(in thousands of US$
except per share amounts Three Months ended Year ended
and shares outstanding) December 31 December 31
-------------------------------------------------------------------------
2004 2003 2004 2003
-------------------------------------------------------------------------
Gross Revenue 405,131 310,648 1,642,427 1,117,324
-------------------------------------------------------------------------
Net income 114,937 88,808 500,668 316,940
-------------------------------------------------------------------------
Per share (basic) 1.51 1.14 6.40 4.06
-------------------------------------------------------------------------
Per share (diluted) 1.49 1.09 6.28 3.90
-------------------------------------------------------------------------
Cash flow 118,850 110,339 560,491 399,975
-------------------------------------------------------------------------
Per share (basic) 1.56 1.42 7.16 5.12
-------------------------------------------------------------------------
Per share (diluted) 1.55 1.36 7.03 4.92
-------------------------------------------------------------------------
Weight Average Shares
Outstanding
-------------------------------------------------------------------------
Basic 76,089,557 77,827,328 78,285,025 78,149,904
-------------------------------------------------------------------------
Diluted 76,922,009 81,110,704 79,708,905 81,292,206
-------------------------------------------------------------------------
Shares Outstanding at
End of Period 76,223,130 77,920,226 76,223,130 77,920,226
-------------------------------------------------------------------------
The Company announces fourth-quarter 2004 net income of $114.9 million ($1.51 per share) compared with $88.8 million ($1.14 per share) for the same period in 2003. Cash flow for the fourth quarter of 2004 was $118.9 million ($1.56 per share) versus $110.3 million ($1.42 per share) for the same period in 2003.
For the year ended December 31, 2004, net income was $500.7 million ($6.40 per share) compared with net income of $316.9 million ($4.06 per share) in 2003. Cash flow for the year was $560.5 million ($7.16 per share) compared to $400.0 million ($5.12 per share) for 2003.
The Company generated both record net income and cash flow in 2004. Improvements in the Company's transportation costs and higher prices contributed to these record results.
Fourth quarter earnings were affected by a build up of crude oil inventory and in transit volumes of 1.7 million barrels and an increase in refined product volumes of 630 thousand barrels as compared with inventory and in transit volumes at September 30, 2004. Our refinery turnaround, which began in the middle of October, was completed successfully, but with a build up of crude inventories. We also moved the sales point for crude oil on one of our export routes closer to the final destination. This build up of inventories led to a deferral of earnings and reduced our net income for the fourth quarter by an estimated $32.0 million compared to the third quarter of 2004, an impact of $0.42 per share.
There was also a build up of crude oil in transit and inventory levels when comparing with December 31, 2003. There was an increase of 1.08 million barrels with an estimated reduction in net income of $14.5 million.
SHARE REPURCHASES
The Company's substantial issuer bid share tender, which ended on July 19, 2004, resulted in the repurchase and cancellation of 3,999,975 shares at C$40.00 per share.
The Company's Normal Course Issuer Bid program was renewed on August 13, 2004 and will terminate on August 12, 2005. Under the terms of this share repurchase program, the Company is able to repurchase up to 7,091,429 Class A common shares through the facilities of the TSX. In the third quarter of 2004, the Company repurchased and cancelled 1,257,500 shares at an average price of C$40.00. No repurchases were made in the fourth quarter of 2004.
At the end of the fourth quarter, the Company had 76,223,130 common shares and 2,086,656 options and convertible securities outstanding.
Additional repurchases and cancellations of 459,100 shares at an average price of C$42.62 have been executed in January 2005.
LISTING ON THE KAZAKHSTAN STOCK EXCHANGE
On December 27, 2004 PetroKazakhstan's common shares began trading on the Kazakhstan Stock Exchange, being the first foreign company to be granted approval for listing. The Company believes that this will create an excellent opportunity for Kazakh investors to participate in the growth and success of its business operations in Kazakhstan.
UPSTREAM OPERATIONS REVIEW
-------------------------- PRODUCTION
As announced, for the fourth quarter 2004, production averaged 152,510 barrels of oil per day ("bopd") and for the year as a whole production averaged 151,102 bopd. Mechanical pump failures on some high rate wells as well as allocation of capacity at the Kumkol Central Processing Facility used by both PetroKazakhstan and the neighbouring field operator, Turgai Petroleum, and the delay in drilling of a number of Aryskum development wells negatively affected overall production. As these problems either have or are being addressed, and as the development program for the Kyzylkiya, Aryskum and Maibulak ("KAM"), Akshabulak and Kumkol North fields progresses, PetroKazakhstan's 2005 annual production target is 170,000 bopd. However, the company recognizes that this target can only be achieved with the timely receipt of various regulatory approvals and in the absence of unforeseen marketing constraints.
EXPLORATION AND APPRAISAL
During 2004, the Company's successful exploration and appraisal program resulted in the addition of some 25 mmbbls in the proved and probable category. The extension of the Kyzylkiya field to the north and into the new Kolzhan license is now an integral part of the field development as new wells will be brought on to production quickly. Similarly, the drilling of wells to locations below the Aryskum gas cap, resulted in the discovery of new reservoirs in high quality channels sands. Production rates of up to 1,600 bopd confirm the similarity to sands in the Akshabulak field. This opens up a whole new concept for development of channel sands in this geological trend in our licenses, which will be pursued with further seismic and appraisal wells in 2005. As in previous years, the Akshabulak field yields further reserves additions as channel sands and extensions to the existing reservoirs are found from successful appraisal drilling.
In 2005, the Company will drill at least 17 E&A wells, acquire a minimum of 400 kilometres ("kms") and 300 square kms of 2D and 3D seismic respectively.
The Company now has an exploration prospect inventory that includes 94 independent structures and over 1.1 billion barrels of unrisked reserves.
RESERVES
On February 23, 2005, PetroKazakhstan reported significant additions to its oil and gas reserves in 2004. As of January 1, 2005, Proved and Probable reserves totaled 549.8 million barrels oil equivalent ("mmboe"), compared to last year's total of 495.4 mmboe. This year's total comprises 502.9 million barrels of oil ("mmbo"), 32.1 mmboe of Natural Gas Liquids ("NGLs") and 88.4 billion cubic feet ("bcf") of natural gas representing a replacement of production of 197%.
Of the 549.8 mmboe reported, 71% (or 392.0 mmboe) is proven and 29% (or 157.8 mmboe) is probable. The proven reserves are further broken down into 229.7 mmboe of proved producing and 162.3 mmboe of proved undeveloped.
Oil reserves have increased from 490.0 mmbo to 502.9 mmbo, replacing production by 123%. Similarly, total oil and NGLs reserves have increased from 490.0 mmboe to 535.0 mmboe, replacing production by 180%.
NGLs and gas reserves additions have been a result of PetroKazakhstan programs for the full utilization of its gas resources: extraction of Liquefied Petroleum Gas ("LPG") at plants in the Akshabulak and KAM fields, efficient use of produced gas at the Kumkol Power Plant and conservation of dry gas by re-injection into reservoirs for future extraction and sale.
These reserve additions and the low associated capital cost translate into finding and development costs that are extremely low at $1.08/bbl and $1.53/bbl for the one and five year periods, respectively.
Finally, the independent reserves evaluator, McDaniels and Associates Consulting Ltd, has estimated that the Company's proved, probable and possible reserves are in excess of 800 mmboe.
DOWNSTREAM MARKETING, TRANSPORTATION AND REFINING
------------------------------------------------- CRUDE OIL PRICES AND TRADING
Throughout 2004 the international crude oil markets remained nervous about the lead up to the elections in Iraq, production interruptions, and the level of US inventories. At the same time strong demand from China and transportation capacity limits in Russia added further upward pressure to an already upward market. As a consequence of these issues, international crude oil prices remained at extremely high levels with an enormous level of volatility. The highest recorded daily mean for Brent dated in 2004 was $52.03/bbl with a low of $29.13/bbl producing a price spread over the year of $22.90/bbl.
In response to the supply concerns OPEC increased their output of heavier sour crudes. While this addressed the overall supply demand balance it caused a distortion of the heavy sour/light sweet differentials. Crude grades such as Urals saw their discount against Brent rise from around $1.60/bbl at the beginning of 2004 to a high of $7.50/bbl by October 2004. This generated a strong incentive for European refineries to buy the cheaper heavier grades and consequently the Mediterranean market became long on sweet crude and prices for sweet crudes began to slide against Brent in November 2004. Grades like CPC Blend and Siberian Light faired worst recording a discount to Brent of up to $4.50/bbl. While Kumkol performed better, the premium against Brent which typically was between $0.50 to $0.80/bbl slipped to a discount of between $0.10 and $2.00/bbl during the last 6 weeks of 2004. Kumkol closed the year at a discount to Brent of $0.12/bbl.
DIFFERENTIALS
Our export netback differential to Brent constitutes our largest single expenditure and the management of this cost is one of our primary objectives.
On a yearly basis, our average 2004 differential was $12.62/bbl, $1.49/bbl lower than the $14.11/bbl achieved in 2003. This was the result of the elimination of FCA contracts, the higher utilization of cheaper routes and our KAM pipeline and Dzhusaly terminal.
However, the fourth quarter of 2004 saw a deterioration of the differential (to $13.83) reflecting the changes in the crude oil markets above and the seasonal impact of night time shipping restrictions in the Bosphorous Straits, increased demurrage costs and shipping rates. This situation is expected to continue for the first quarter of 2005.
On a go forward basis, the Company anticipates the average differential to return to the $12.00/bbl range.
New pipeline infrastructure currently being built in or near Kazakhstan, namely the Baku-Tbilisi-Ceyhan ("BTC") pipeline to the Mediterranean and the pipeline from Atasu to Western China expected to be operational by mid-2006 are anticipated to have a positive impact on differentials.
REFINING AND REFINED PRODUCT SALES
----------------------------------
The ongoing continuous improvement program at our Shymkent refinery continues to yield significant value benefits. By measuring the change in product yield value on a fixed crude and product price basis (thus eliminating the variations of market prices) we obtain indications of a steady trend of improvements over the last two years which have generated efficiencies in excess of $2.00/bbl. This trend has shown an on going improvement as well as a significant reduction in volatility.
By the second quarter of 2004 the Vacuum Distillation Unit ("VDU") was operating at maximum capacity and regular sales were being made through the Baltic port of Tallinn. During 2005 we expect to be able to increase the yield and to develop additional outlets for our Vacuum Gasoil ("VGO").
Refinery unit costs showed an increase from $0.58/bbl in 2003 to $0.80/bbl which is line with the equivalent figures in 2002. The primary reasons for the increase was lower throughput reflecting partially the maintenance turnaround in 2004 and the additional operating costs associated with the start up of the VDU.
otcbargains: SWTX
I still think this stock will dip ahead of the 5/15 Q1 results, or afterwards, since they're going to be down sharply from Q4. But I'll pick up a few shares at the right price if the opportunity presents itself, but that may not be until May ...
TMXN +.44 to 2.14 on 1.7M shares
Huge reserves in Kazakhstan ... mentioned as a likely double or triple at 'The Street.com' ... and one likely to soon make a move to the AMEX. Only potential pitfall is that the Kazakhstan government is seeking a bigger bite of profits for new companies ... here's the text from 'the steet.com' ...
Still, Chernoff feels that Transmeridian has the most immediate upside left.
Transmeridian has long touted its rights to a major oil field in Kazakhstan. But the company now has the financial flexibility to make that field pay off. And it could attract a lot of new attention along the way.
"TMXN is likely to move from the OTC bulletin board to the American Stock Exchange very shortly," Chernoff explained. "This move will put TMXN and its huge exploration and production potential on the radar screens of oil and gas investors around the world."
The stock slid 1.8% to $1.68 on Tuesday. Looking ahead, however, Chernoff says the shares "could double or triple" on the basis of the value of the company's reserves.
2morrowsGains: PLUS will have plenty of cash to buyback shares with their $4 per share settlement award. That's one effective way of boosting the stock price and increasing EPS at the same time. Also, a buyback of shares below book value serves to further increase the book value on the remaining shares !
ETEC qualifies to bid on more NJ projects
This could mean significantly more business ... stock looks cheap at $1.80 with EPS of .21 through 9mos of their March fiscal year (excluding .04 charge in Q3). EPS is fully taxed and diluted. Easy comparison coming up in March versus .01 last year. Stock is down from a recent high of 3.15.
TRENTON, N.J., March 2, 2005 (PRIMEZONE) -- Emtec Inc. (OTC BB:ETEC.OB - News) announced today it has received the SCC Contractor pre-qualification for the telecommunications discipline from the New Jersey Schools Construction Corporation (SCC), a subsidiary of the New Jersey Economic Development Authority (EDA). The SCC is a public agency responsible for implementing an $8.6 billion overhaul of the educational infrastructure of hundreds of schools throughout New Jersey.
The SCC is entrusted with the responsibility for financing, designing and constructing all of the school facilities projects in Abbott districts - school districts that receive 55 percent or more in state funding for education. In addition they are also responsible for providing grants to fund the state share of facilities projects in non-Abbott districts.
This classification enables Emtec to participate in the bidding process on specialty construction contracts advertised by the SCC. The requirements for this qualification include having a current classification with the New Jersey Department of Treasury, Division of Property Management and Construction (DPMC).
``We are pleased to have received this designation with the SCC and we look forward to the opportunity to provide telecommunications solutions to the New Jersey school systems utilizing State funding through the SCC,' said John Howlett, Emtec CEO.
wade: DGIX
That was definitely one of the risks while I was accumulating ... plenty of days with zero volume. But there's no such thing as a perfect stock. There's always some negatives that can be found. And often my biggest winners have NOT been the one's that I expected to do the best. So sometimes in thinly traded issues, I've come to own the equivilant of several days of average volume. Back in September, DGIX was trading only an average of 500 shares a day for the month. At $0.50 per share, that's the equivilant of $250 bucks a day volume. This February it averaged over 116k daily volume, which is about $150,000 per day at current prices. Pretty damn good improvement, but I never would have guessed it could change that dramatically. A 600x increase in daily dollar volume in a mere 5 months is amazing! ETEC and TMFZ are other examples of very thinly trades issues that have gained a stronger following. Hopefully CGNW will also get 'discovered' after next quarter's results when the trailing PE drops the big loss of last year's March quarter, and the PE shows up as under 5 in all the stock screeners. It could make all the difference in a thinly traded stock like CGNW.
lentinman: ELN
That opening price would certainly seem to be more than a coincidence, though 1 year is a long time. It would be interesting to see the statistics on how often gaps get filled, how quickly, and whether the retracements really pertain to the gap, or could be attributable to normal volatility in share price. I suppose it depends to some extent on the investors who hold or watch the stock. If there are many technicians among them then the gap would have more relevance ... otherwise not.
hweb: LMIA
Thanks for LMIA, though I also got out a few weeks ago in the mid to upper 5's for about a 30% gain. But heck, that was in a few weeks time, and most money mangers are thrilled to see 30% in a year ! But over $7 I'd be concerned about this quarter's #'s given the possiblity of taxes, and the implied guidance for Q4 was not all that strong. But the CC and foward guidance will be key to where it goes from here.
DGIX has evidently be boosted by institutional investors. That's what I would attribute some of those large 100k block trades to. Hopefully they're thinking it deserves of PE of 15 and an AMEX listing. After all, it was once a Nasdaq stock, till they failed to meet the continued listing requirement of share price.
hweb2: ETEC
I've been accumulating. Someone seems to be unloading a lot of shares, perhaps not realizing that last quarter was .05, not .01 as reported, due to the charge. But I won't complain if it goes still lower. It means I'll be buying even cheaper shares !
otcbargains: you may want to consider opening a 2nd account at Waterhouse. I'm going to be paying closer attention to execution problems at Ameritrade on OTCBB stocks, however I have no complaints with them for listed and Nasdaq stocks. I remember trying to unload a bunch of DLGI when they reported weak earnings, and none of my orders got executed even though I kept entering below market orders as the stock dropped. Poor execution can cost a bundle !
linuspop: Ameritrade
I recommend you send them an email. It's especially frustrating to miss out on executions on stocks starting a quick upward move on an announcement like today's for CGIH. Were it not for my Waterhouse backup account, I would have missed out on adding to my CGIH holding. Depending on the size of the trade, it could mean $1000's. It's penny wise, but pound foolish to look at only commissions when choosing a broker. Large spreads and poor executions can hurt you far more, especially with larger trades.
Waterhouse tops Ameritrade yet again
Maybe that's why hweb2 trades at Waterhouse. At 3:54pm I look over my day's activity and see that my low-ball bid for BWLRF at .58 has not gotten filled. Bobwins has been pounding the table on this one and he's made a strong case that it's not just because it starts with his initials, 'BW'. I see the lowest ask on level2 is 8000 shares from GNET at .605 and 2500 shares from NITE at .605. I know Ameritrade works through NITE a lot, so I figure they'll quickly fill at least 2500 shares at that price. At 3:55 I enter my trade at Ameritrade to buy 5000 shares of BWLRF. 45 seconds pass, and nothing happens. I then enter the same trade at 3:56 at Waterhouse. Immediately 2500 shares execute at .605, and at 3:57 the remaining 2500 shares execute at .605. In the meanwhile I didn't even get a partial fill at Ameritrade and 4pm passes with the order still open. It appears that Waterhouse is the better broker for trading OTCBB stocks. Especially in a fast moving market, efficient and optimal order routing is critically important.
otcbargains: Ameritrade
I'll certainly be more alert to execution problems at Ameritrade and will shift more trading to Waterhouse as appropriate. It can make a big difference, especially in a fast moving market. That's one reason I like to have more than one brokerage account.
Waterhouse tops Ameritrade on Executions
It's happened before. This time I sent Ameritrade a note ...
Entered an order to buy 2000 CGIH at 4.90 at 10:17am. No execution even as 1000's of shares traded in subsequent minutes below my limit price. At 10:18am I enter the same order in my Waterhouse account and it executes immediately. At 10:23am I enter another order at Waterhouse to buy 2000 CGIH at 5.00. 500 shares execute immediately at 4.99 and the remaining 1500 at 4.98 at 10:25. In the meanwhile I entered another order at Ameritrade at 10:24 to buy 2000 at 5.00. No execution, yet 40000 shares trade at or below 5.00 over the next 3 minutes. This type of thing has happened before. What's going on ? Are you not routing the orders efficiently ? Are you favoring certain market makers over others ? Should I be trading at Waterhouse more often ?
nsomniyak: CGIH
Typically, in my experience, the move happens within a few days to 1 or 2 weeks at the most, after the announcement. It's been a long time in coming for CGIH, since they announced plans to apply for an AMEX listing late last summer. I'm very glad they finally made it, and it should given them better visibility and significantly broaden the stock ownership to include individuals and institutions that don't buy OTCBB stocks.
CGIH will benefit significantly with an AMEX listing. It's in the same internet search engine sector as GOOG and YHOO, and should command a much higher PE once listed, imho. CGIH continues to grow very rapidly both internally and through acquisitions. It has already gained .32 to 5.04 in the last 15 minutes since the announcement.
nuts: CLF has had a great run these past few weeks and last year. If you like the steel sector, ZEUS and MUSA look like the cheapest plays to me. It looks like the sector may have another strong year, in spite of concerns about too much new capacity coming online in China. The low PE's are discounting a lot of risk imho. Good luck.
bones1420: Taxes, Schd D
I use Quicken each day to enter my trades and track my portfolio performance over time. It's good to have a complete 20 year history of every trade I ever made. Quicken now allows you to import daily trades directly from your broker but I still do the entries manually because of the way my Quicken accounts are setup. At tax time Quicken is compatible with Turbo tax and you do a quick export of the year's trades and get a complete schedule D.
But I've been old fashioned, at least until this year, by manually aggregating trades where the sale occurred the same day but the purchases spanned different days. The IRS allows you to put 'VARIOUS' for the purchase date. So I do the 1040 entirely by hand, though Quicken does the preparatory work for me. I've always favored submitting a handwritten 1040 since I suspect it may reduce the chances of an audit (not that I have anything to hide, but nonetheless an audit would be a nuisance at the least). A typewritten copy can easily be scanned and analysed by computer, whereas a handwritten copy cannot be handled so efficiently. Of course, it's even possible that the reverse is true, and that an audit is more likely of a handwritten 10K, but it sure is easier for them to process the typewritten one's, so I think a greater percentage of those get audited.
Nonetheless with about 1600 trades in 2004, which aggregate to about 420 with 'VARIOUS' purchase dates, I don't relish the thought of spending perhaps 10 hours to handwrite 20+ pages of Sched 'D'. This year they may be getting a typewritten version from turbotax. However I did write a simple 'post processor' which reads the Quicken export file and aggregates the trades as I have done manually before importing them into turbotax, so I'll be reporting just 420 entries, rather than the full 1600. I figure, don't given them more information than they're asking for.
Anyway, how are you frequent traders handling your portfolio tracking and schedule D's ?
Knowledge: DGIX
I would usually take a favorable view of a shift in ownership like that. The seller is probably looking to lock in some profits, while the buyer is looking to ride the stock to higher levels. Basically a shift into 'stronger hands', and hopefully the new large stakeholder will also be buying shares on the open market to 'underscore' their interest and drive the stock higher.
Bobwins: BWLRF re ZINC and INDIUM
Worldwide Indium production is primarily a byproduct of ZINC processing according to what I've read. Here's an interesting article on the subject ... at $1000 per kilo, hopefully Breakwater will be cashing in ...
HONG KONG, Feb 2 (Reuters) - The government of Zhuzhou city in China's southern Hunan province has shut down five indium plants for a month because of power shortages and pollution concerns, trade sources said on Wednesday.
They said about 10 indium plants in nearby Xiangtan city had also been shut down for the same reasons.
The total capacity of the closed indium plants was not immediately available. The two cities are near the capital city of Changsha.
The Zhuzhou government had ordered all indium plants in the city to close between Jan. 27 and Feb. 28, the sources said.
Chinese indium suppliers say they expect prices to smash new records this year on strong demand from Asian flat-screen TV and computer manufacturers. The closures may fuel the price further.
Zhuzhou and Xiangtan are two main indium producing cities in China, which supplies about 40 percent of world demand.
Traders estimated China produced more than 200 tonnes of primary indium last year, mostly as a by-product of zinc.
Traders in Europe said spot indium prices were hovering around $1,000 a kg, against $875-$925 late last year.
"The market is being pushed on the supply side at the moment, not on the demand side. This (closure) underlines the supply deficiency, and the price will go up," a European end-user said.
"We're getting offers above $1,000/kg on the table now, and after the festivities (Lunar New Year) when the Japanese buyers come back to try and secure new long-term contracts, they will find that it is a different game." he added.
Production at Zhuzhou Smelter, China's number two indium producer aiming to make 20 tonnes this year, remained normal, a company official said.
"We do not need to shut down...we have a special facility to control emissions," he said.
But power shortages have forced Zhuzhou's listed Zhuye Torch Metals Co. Ltd. <600961.SS> to temporarily lower zinc production rates by a third.
The sources said Zhuzhou and Xiangtan were suffering from a drought which was worsening water quality of the already polluted Xiang River which runs through the two cities and Changsha. The river also is the source of drinking water for local people.
Waste from indium plants to the river was threatening drinking water for more than 100,000 people, a report from a newspaper in Zhuzhou said.
The simple technology of indium production and high prices of the metal had attracted unauthorised operations in Zhuzhou, the report said.
Trade sources said the indium plants in Zhuzhou and Xiangtan bought slag from Chinese zinc smelters to produce indium, a soft, silvery-white metal, causing serious pollution problems to the cities and Changsha.
ZEUS and MUSA continue to trend up after stellar earnings reports on Monday. But they still sell at trailing PE's of under 5, a significant discount to peers elsewhere in the steel sector. They have some catching up to do to other steel processor like TONS, up 200% over the last several months. The MUSA warrants (MUSAW) are doing especially well, of course. Up 60% this week, due to the added leverage they provide.
otcbargains: SWTX
I think this is a tricky stock. Investor perceptions about the risks vary significantly, imho. If their guidance is on target, or even conservative, I think this stock will ultimately head much higher. But it's a very competitive sector with many variables that are constantly changing. They have their share of challenges ahead. I'll be watching the stock for a good entry point over the next 10 weeks, if the opportunity presents itself. Time will tell. Good luck.
Bobwins: BWLRF
Indium, a precious metal that is a byproduct of ZINC mining, was mentioned on the SWTX CC as being in short supply, hence a 10x rise in price to $1000 per kilo in the last 2 years. It's now fully 20% of their COGS ! Does Breakwater produce much Indium ? That could really boost their earnings further, as it's rising in price even much faster than ZINC. Could Indium become a significant profit contributor for them ?
PS You wouldn't be more partial to BWLRF just because it starts with your initials, 'BW', would you ? Factors like that can have a subconcious influence, even if you're not aware of it. (just kidding)
otcbargains: SWTX
Do you mean in Q1, or the just reported Q4 ? Q4 was great, but obviously is not representative of what Q1 will look like. I think the stock will drop ahead of, or upon the Q1 report, which they gave weak guidance for. Gross margins are expected to drop into the low to mid 30's and revenues are seasonally weak, so EPS may be pretty low for Q1. I'm watching from the sidelines for now, but the stock is already down .12 from its morning high of 1.41. I think that at some point between now and the 5/15 Q1 report, the stock will dip significantly.
wade: SWTX
There are plenty of risks with SWTX, but I think there are fewer stocks than you imply with a forward PE of 5. Value is getting tougher to find these days. I've had most of my success with low PE stocks. In fact, I think the biggest winner from this board YTD is WGMGY, up over 200% since Jan 1. The PE was way too low on that stock, and the market has corrected for it ! Low PE stocks can be a bonanza, and I've benefitted greatly from this board. WGMGY is just one example.
Big revenue growth is not in the cards for SWTX. ASP's are dropping significantly for their plasma displays. But adjusted for special items, management indicated that EPS would have been $0.15 for 2004. If they meet the high end guidance of $0.25 in 2005, that's 67% bottom line growth with a PE of 5. Of course, that's an optimistic scenario, fraught with potential pitfalls. Who knows how high the price of Indium will go ? Q4 gross margins are at a peak partly due to special circumstances, and not likely to be repeated. But they're not forecasting 4x $0.10 or $0.40 for 2005. If they did, the stock would be zooming.
I'm not getting back into SWTX today, but may take a small position if it dips enough.
echos: TALL
I was very impressed by your post. TALL's expenses seem to be well short of what might be required to provide 'excellence' in software maintenance and support of such a diverse product lineup. No doubt they are taking many shortcuts that could ultimately haunt them and scare away customers. I own no shares of TALL, but had been considering taking a small position. I now have a better perspective of the Company, and might still buy a few shares, but on a somewhat different premise. A good PR job by the Company might still lead to short term gains in the stock price, but their long term outlook would seem to be fraught with uncertainty.
PS I spent 18 years with IBM in network support, but also dabbled in software development. I still enjoy writing code periodically for my own use, and consider it to be a form of mathematical poetry.
SWTX CC highlights
I listened to the call, though somewhat casually, since I no longer own any stock, but was impressed by the Q4 results. Here are a few key points :
- Share count 32.7M as of 12/31, and expected to grow no further.
- Guidance for '05 is for 10% revenue growth, or more if new customers come onboard. Working against the revenue growth are declining ASP's of displays (-20% to -30%) in a very competitive sector. But unit sales should be up sharply.
- Net Income is expected to range from 10 to 13% of revenues ... hence EPS guidance of $0.19 to $0.25 for the year. If they make the high end, that's a forward PE of under 5 based on today's closing price of $1.18. And management surprised to the upside in Q4, so maybe they're being overly conservative. But the future is tough to predict in this sector ...
- Indium has grown to 20% of COGS due to a 10-fold rise in the price of this metal over the last 2 years. Now selling at $1000 per kilo. Company is exploring alternative metals, but it's at least a year away from application.
- Plentiful NOL's, so little or no taxes for several years.
- CAPX spending to rise to $1M in '05 from $400k last year.
- Q1 is seasonally weak with lower revenues and tighter margins ... so don't look for a repeat of Q4. Gross margin guidance is for low to mid 30's.
I may buy back into this stock on weakness, but it could rally tomorrow based on the big Q4 surprise. I may wait for their seasonally weak Q1 results before I get back in. Good luck to all shareholders of SWTX !