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Only 1 week until the earnings release. I'm still looking for them to deliver on the other relationship and a CEO, as they promised in the conf call. I would imagine they would have introduced the new CEO by now, so he can present the next call. Guess that was asking too much. Good earnings report will tide me over, but that new CEO better come fairly soon. They have had ample time to find one and given the economy, I'm sure there are candidates available.
COBR - I wouldn't waste time buying too, if the company gave me 50k. Unfortunately, I had to shell out my own money. Sort of a no brainer. "We'll give you 50k, but you have to buy stock." Upside you make more money. Downside is you get less money than the 50k handout.
I don't necessarily look as a reverse split as a bad move. Some companies do the reverse to avoid getting delisted from a major exchange. In this instance it is because there has been some negative circumstances surrounding the company. From EGMI's perspective they would use the split to uplist once they reach the requirements for a better listing and would use a split with positive circumstances surrounding the company.
Are there some negatives to the reverse that I am not aware?
Definitely not an original idea. Don't bless me for the mere 10%+ today, maybe if it's up next year 2 or 3 times than you can bless me.
As a stock with its earnings right now it's a value. Factor its growth in and some of the aforementioned catalysts and its a deep value. Good probability it can move like AYSI or ZYXI.
Lord Steinberg sitting on a 56.25% gain after this transaction. Wish I could be in his shoes.
21 days until the conf call. Still looking for that CEO and the other partnership...
I locked in. Paired half my 10% position to 5%.
Alternative to AYSI and ZYXI.
I'm in the race ZYXI and AYSI race, as well. Both are winners in my book. I'm also partial to EGMI, which is also a VMC top pick. I've been riding this since the high teens and recently bought as high as .59. I was a little miffed that the Chairman got a private transaction with a shareholder at .48 recently. I would have definitely been a buyer at that price. Lots of little things that can contribute to share price appreciation on this stock considering where it started. The recent promotional agreement could provide a spark to get them over their 2008 guidance. The next month has potential for some interesting catalysts based on their conf call. They've hit on three of them so far (Additional BOD, Chairman, Thomas & Friends licensing agreement). Look forward to continuing growth in revs/earnings as well. Trading for about 8x fwd PE, based on last Q performance.
http://gamecardmarketing.com/index.html
Previously this website was still in development. Looks like they are operational now. Prices look like it starts from $1.50 a card. I'm sure volume discounts apply.
Lord Steinberg was lucky to get a big block at .48. I certainly would've taken a big bite at that price.
Nice. At .13 I would have loaded up the boat with maybe a 10% position. It took me a while to notice this one.
The sellers on the ask have been around .20 for the last month since I bought. A handful at .155 and .159 would have been nice. I averaged in just under .18. No reason to chase it right now.
INRB - This company definitely will have lumpy growth. That was my mistake was loading up too soon. This news has had minimal impact on the shares, so looks like we'll need a whale of a contract to get the stock up.
EGMI: Interesting swap of shares. Steinberg now has about 8% of the company and is moving aggressively and seems to have some plans for the company. Maybe he bought from a large shareholder like Pequot who has been unloading for other reasons. I'd be willing to guess that he has someone in mind for that CEO slot. Guess I'll have to wait and see.
This will make the earnings announcement and conf call scheduled for 8/7 and 8/8 quite interesting. Looking forward to these events.
Open up your purse...
I'm a long way from having 5% of my portfolio buy 5% of REPR.
INRB - Didn't see anyone post this news.
IRACORE International Inc. Receives $9,800,000 Purchase Order
Hibbing, MN – July 11, 2008 – Iracore International, Inc., a wholly-owned subsidiary of Industrial Rubber Products, Inc., announces today that it received a purchase order from Hibbing Taconite Company, a Cleveland Cliffs Property to supply the Tailings Slurry Pipe for the Hibbing Taconite Hydro-Separator & Pumping Systems Project. The pipe will be manufactured in the Hibbing, MN Iracore plant and the deliveries will commence in September of 2008, according to the contract. Although some details are still in design, the contract has an approximate value of $9,800,000.
This news release contains forward-looking statements about the Company, its business prospects and future results that are subject to risks and uncertainties posed by many factors and events that could cause its business and results to differ materially from what may otherwise be anticipated.
For complete forward looking statements, please visit http://irproducts.com/investors/pressreleases.html
Or Contact:
Investor Relations
Industrial Rubber Products, Inc.
3516 East 13th Avenue
Hibbing, Minnesota 55746
(218) 263-8831
Built a 5% position in this over the last month. I liked the moat provided by Medicare as the only reimbursed device for SCIG therapy for PI. Use of Vivaglobin is growing, it's the tip of the iceberg for PI SCIG therapy and opening up the device for delivery of other infusion related drugs would be a substantial market.
Thanks to the mods for the initial research. Will be eyeing the next Q for any juicy nuggets. Someone loves painting the tape on this stock. Always seems to be a couple hundred shares at the ask at the end of the day, since I've been buying. Happening right now as I type.
Underwhelmed by the market reaction to the PR. Guess it was too much to expect +.02 or +.03 after seeing the news, the market wants something more substantial. I think this relationship is being underappreciated. Thomas is a huge franchise and based on the PR they are expecting revenue from this relationship to start hitting the bottom line by end of 2008. The best part about this relationship with HIT Entertainment is the ability for EGMI to grow their sales through other HIT franchises. They also have Barney, Bob the Builder and other sizable children's characters to utilize for game cards. The fact that they are using it for Thomas & Friends leads me to believe they think it will be very successful, otherwise they would use it on one of the lesser brands first. Guess it will be just wait and see for now.
True. I've got a 2 1/2 year old and he loves Thomas, but I think these cards are more suited to people 7 or older. With that said, Thomas is a huge franchise, so I'm not complaining. They have now announced 1 of the 2 relationships they promised. Now awaiting the one more relationship, new CEO and news on the reverse split. Frankly, I would like to see some more substantial news like huge revenue/earnings. I think that will come given the success of the game card in the lottery markets. Steinberg I think can help in that respect, though we are locked out of the US with the SciGames deal.
Missed the mark with Thomas and Friends. I didn't even have these guys on the list. I didn't see how they intend to use the game card for these kids. Age range is kind of young given its primarily marketed to 3-5 year olds.
So we know that Lord Steinberg contacted the company initially in Nov 2007. They talked, but could not come to an agreement. What they talked about we don't know. Than in their 3/26 conf call they mention they were already looking for a CEO and Board. Steinberg already new this before buying starting 3/31, so it was already public knowledge. What he proposed and what they discussed in his initial offer we have no idea. I'm guessing there were things that Steinberg knew they would agree to change from his initial discussion, but they could not find a middle ground on all changes that's why he did not buy in at once. I would imagine he had some information given his initial due diligence to get control of the company. He bought some shares and went over the 5% control mark by 5/27/08, made another proposal and than subsequently on 6/06/08 was made the Chairman of the Board? Seems a bit reckless of the company to make such a decision so quickly. I'd imagine they were very close and had a basic gameplan in place and Steinberg presented a good option to further grow the company. Approval was than granted because they presented a plan knowing the hurdles. I'm speculating that the CEO will be someone that Lord Steinberg will trust to steward the company and his investment. I'm hoping that this will all unfold by next month, because that is what the company has promised. A lot of speculation here, but basically he probably had to wait until they announced certain things in the conf call, so the info is formally public, than he bought. Now everything looks copasetic. They've got me on the hook now so I'll wait to see how this develops, but I'm not afraid to let go of the bait.
It's been 1 1/2 months since Steinberg's last purchase and almost two months since the conf call. I would imagine they knew before the call that they were planning to appt him Chairman and he was onboard with all their plans. He seems to be a shrewd businessman from his history.
To get to a 15-20 PE valuation will need them to hit those value drivers they mentioned in the conf call and to deliver on earnings through this year. This company has only gotten traction over the past few quarters with earnings and recurring revenues. Add in a better exchange and the reverse split to attract a different investor base and we could be at 15-20 PE valuation the end of next year. Based on 2009 forward earnings estimate that's a presplit adjusted $2.1 - $2.8. This is probably the rosy scenario, but all entirely possible given the plan the company laid out. However, as I've been saying is that the company has to meet some of these milestones they have laid out to gain credibility. They started it with finding a establishing an independent board with a new chairman. They are on the clock to deliver by the time the next Q comes around.
INRB -
Just crossed the Maginot line w/ my position after this huge surge in price. Too bad it's only on 2.1k volume.
I've been holding a long time and continue to keep my ears on the ground for this position. I made this a 10% position way back and I'll have to remember to keep these 10% positions for more liquid stock. Amazing how much these low liquidity stocks move.
A must read for RE Bears...
http://www.cepr.net/documents/publications/housing_crash_baby_boomers_2008_06.pdf
EGMI: Patiently waiting for some of those value drivers they mentioned in the conf call that should be announced before the end of the quarter. I'm not sure if they mean before the end of the reporting date, which would be June 30th or before they report their 2nd quarter numbers, which would be sometime around Aug 15th. They specifically mentioned announcing two new partners (one for Toys & Games and the other for sports cards). During the call they mentioned two new distribution partnerships will be announced at the end of the quarter, but I'm not sure if this is an overlap of the previous info on the Toys/Games & Sports Cards. A final point was they intended to announce the annual shareholder's meeting and intended to address the reverse split within a month's time. It appears a month has passed since the earnings call, so the clock is ticking on this one.
EGMI delivered nicely with the Chairman of the Board and BOD. If they deliver on the items above, than the company will have substantially more credibility. The 7 PE based on projected 2008 earnings would also probably be history.
Patiently waiting for some of those value drivers they mentioned in the conf. call that should be announced before the end of the quarter. I'm not sure if they mean before the end of the reporting date, which would be June 30th or before they report their 2nd quarter numbers, which would be sometime around Aug 15th. They specifically mentioned announcing two new partners (one for Toys & Games and the other for sports cards). During the call they mentioned two new distribution partnerships will be announced at the end of the quarter, but I'm not sure if this is an overlap of the previous info on the Toys/Games & Sports Cards. A final point was they intended to announce the annual shareholder's meeting and intended to address the reverse split within a month's time. It appears a month has passed since the earnings call, so the clock is ticking on this one.
EGMI delivered nicely with the Chairman of the Board and BOD. If they deliver on the items above, than the company will have substantially more credibility. The 7 PE based on projected 2008 earnings would also probably be history.
EGMI - Now I know why everyone is so restrained. The WHEEEEEEEEEE! seems to be a counterproductive to stock price. Now exactly 180 degree turn from the point I said WHEEEEEEEEEE!
EGMI - Everyone seems restrained on this stock, but I can't contain my enthusiasm anymore.
WHEEEEEEEEEEEEEEEEEEEEEEEEEEEE!!!!
Link to SGMS patented version of electronic game card.
http://www.wipo.int/pctdb/en/wo.jsp?wo=2008039888&IA=WO2008039888&DISPLAY=STATUS
short shares
I would move the securities so they can't be shorted only after a bigger short position develops. than a buy-in is forced and the short will have to buy back. without a large short position and moving the shares over, only makes the stock harder to short. not sure if either have a significant play into l/t share price. my 2 ¢.
EGMI - Link to my post about EGMI today.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=30048322
Thought I would share, since this is a board favorite.
SGMS relationship.
I'm going to throw this out, since I haven't seen it posted anywhere on the board. A while back, I was digging into the relationship with SGMS. I thought why would they not be all over promoting EGC's cards after being found as lottery product of the year in 2005. It seemed like a great opportunity for them. Well looks like SGMS is promoting their own version of the card. It seems they are pushing this product in trial outlets this year, like Pennsylvania, Oregon, Kansas and Quebec. Kind of old news. It seems they have been developing this for sometime after test marketing the EGC in the lotteries. You could tell the SGMS relationship was broken, since EGMI mentioned that they are only counting the minimum of the $500k licensing fee in their revenue projections during the conf call, instead of factoring some increased % of revenues growth from lottery says. Basically just saying that we will get nothing from this relationship. Guess that is why they renegotiated their agreement. EGMI needed to get paid something for the arrangement and SGMS thinks they have the better mouse trap. Now the agreement locks EGMI out of North America and Italy for 3 years exclusively and SGMS has right to extend it each year for max all in term of 10 years for $500k each year. I think that's how it works.
So does this change my outlook. Not really, because EGMI was performing in spite of the SGMS relationship. SGMS is gravy, but it doesn't appear we will be benefitting from that relationship. Design of product seems sufficiently different so they can not claim patent infringement. I haven't looked into the EGMI patent, yet, but I did look at the SGMS filing. I'm also not a patent expert or even novice. Patent dimwit, maybe. Possibility for North American and Italian lottery sales dims, but we still have promotional ability, indian gaming markets and lottery markets outside the agreements and other smaller markets. Future still looks good to me. I'm still long and may accumulate if things progress.
(look on last page, last paragraph of pdf)
http://www.pgrinstitute.com/LORNEWEILCOMPLETE.pdf
http://www.tradingmarkets.com/.site/news/Stock%20News/1355225/
http://www.scientificgames.com/sections/printed-products/instant-electronic-game-cards.aspx
Tell me about it. Doubled down on the position in the .60's after they caught up on some of those financials. Definitely should not have got so aggressive w/ a non-producer. Learning from my mistake. Patiently waiting, as it is a fairly small position for me.
AYSI - L/T holder here.
Just wanted to say thanks to all those for their great DD. I initially bought in the .5's and sold after it did nothing in the .4's. Than slowly rebought my position at a higher price in the mid .6's. Added significantly in the 1.2's and 1.5. Wanted to add more in the low 2.0's, but it ran away from me. This has now grown into an almost 23% position for me. By far my largest position. I am not letting go unless the L/T dynamics of mining change or company gets squeezed by competitors. Don't see that happening anytime soon, so I will stick out the s/t moves. Only way I pare my position is if I find a better investment. Not many screaming buys w/out much hair like this one. Glad to be here and thought I would share my story.
Looks like CYOA could be the winner here. Good to see they are looking to revive the franchise. I was actually a reader of it when I was younger. Nice fit w/ possibilities for the EGMI Card. CYOA though is probably better suited for a video game type of format, like those portable game players due to the larger memory capacity. This is a very good extension of what you showed on their website, so maybe they are ok with the limited application of the EGC.
Also like the +5% today. Wheeeeeeeee!!!
So with the recent run-up, I've been thinking about some of the catalysts that they mentioned in the conf. call. The CEO is tough to speculate, who it will be. However they did give us some info about some of the licensing partners. They specifically noted Toys & Games market with a brand that has sold over 200 million books and would be announced this quarter. That's a big franchise. In this market it is squarely a book publisher that appeals to children (grade school to early teens). So some of the larger franchises I thought are:
Harry Potter - claims sold over 400 million books.
Goosebumps - claims sold over 300 million books
Berenstain Bears - claims sold over 250 million books
Lord of the Rings - claims sold over 250 million books
Dr. Seuss - not sure of the exact numbers, but has sold a lot of books.
Choose your own Adventure - claims sold over 250 million books
Sweet Valley High - claims sold over 250 million books
Noddy - claims sold over 200 million books
Nancy Drew - claims sold over 200 million books
The perfect market for them would be Harry Potter. It's the right age range to use the game cards, but the # of books EGMI claims is less than Potter's.
Goosebumps is a possibility and would be the right market. A little high in the number of actual books sold vs. EGMI's claims.
Berenstain Bears - age group may be a bit young.
Lord of the Rings would be great for EGMI. Right age range, close to EGMI's claims of books sold. Lots of licensing potential. I hope this is the one.
Dr. Seuss - age group a bit young.
Choose your own Adventure - right age group and books sold. However this brand is a little dated.
Sweet Valley High - right age group, wrong gender. Not sure if girls would get into the EGC.
Noddy - age group a bit young.
Nancy Drew - right age group, wrong gender. Not sure if girls would get into the EGC.
Those are my guesses for possibilities. Guess I'll have to wait to see who it actually will be, but it was fun speculating. Any thoughts from anyone else?
egmi: I remember adnw from my early days of microcap investing.
I hear you on the tax issues and my feeling is even on a fully taxed basis this is a fairly cheap stock. is it the cheapest from a PE basis? no. factoring in the growth I still think this is very cheap. If they attain 20-30% growth over the next few qtrs, just as they have done in the more recent ones, than we can go significantly higher from here $1.5 +. if growth starts to slow than maybe justanother 20-30%. we still have a margin of safety. if there is a better mouse trap than we're in trouble. in this market I think there is room for various technologies.
egmi: if they are able to use up all their tax loss carry forwards by mid 2009, if I was the company I would happily pay tax on the excess. that would mean tremendous growth and a much higher stock price. I was more conservative thinking they may have these tax benefits through mid 2010.
could u expand more on your hesitancy due to lee cole?
egmi: yes I think it is very cheap for the growth potential and the current earnings. the current revenue base provides a good margin of safety and value. the growth is gravy for investors. I'm looking for next earnings, new ceo, new partnerships and a new listing before I reassess. definitely still cheap. it's a 15% position for me.
EGMI: getting some attention today. it's hitting YTD highs. I inagine getting the board in place was essential to moving everything else along (new CEO, reverse split, signing new agreements and better exchange) they mentioned in the last conf call. I'm looking forward to taking out the 52 week high.