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.
Good long term move in my view. to me, this is a future blue chip company. Kick back and watch the massive cash flow roll in.
Big buyer stepping out, LOL
Insider buying occurring?
Ask price now back at $0.135, LOL, baffling.
Has anyone visited their website recently? seems they did an upgrade.
Anyone who wants a decent size amount has to pay up. this could fall to $.09 on 100 shares tomorrow.
Getting brighter and brighter
we need a game changing news release like a buyback or dividend or a large NAVY or commercial order. Its easy to get 1000 shares of this company on the cheap, but if a large buyer wants to get in, they will have to hit the ask price a few times.
All it will take is an order of 1000 shares to bring it back to $0.09
Big Buyer stepping in today
Thirsty For Yield, Nothing Trumps This REIT
http://seekingalpha.com/article/3989682-thirsty-yield-nothing-trumps-reit
Up to today, nope. that does look good though. Hope they upgrade the website very soon.
Second Royalty Bearing Agreement in Meat Market for EnWave Corp
http://smallcaps.us/second-royalty-bearing-agreement-in-meat-market-for-enwave-corp
In less than a month, EnWave Corp (TSXV:ENW – $1.15 CAD & OTC:NWVCF – $0.89 USD) closed two additional commercial royalty-bearing agreements.
In June, it signed a deal with Merom Farms to produce wasabi-based products. And this week EnWave granted Perdue Foods LLC the exclusive right to use the Company’s Radiant Energy Vacuum (REV) dehydration technology to process pet food and pet treats in the United States and Canada.
In return, Perdue, a leading food and agricultural products company, has ordered a 10kW REV dryer, which it will receive in the coming weeks. In addition, Perdue will pay EnWave a quarterly royalty on sales of REV produced products. Typically, royalty streams range between 2% and 10%.
In order to retain its exclusivity, Perdue must purchase a 100kW or larger REV machine from EnWave within a specified timeframe.
Very interesting to know is that Perdue has a subsidiary, named Full Moon Pet Treats, which is already very successful in selling pet foods across North America.
The brand separates itself by offering pet foods that only contain human grade meat, which is approved by the U.S. Department of Agriculture (USDA). In addition, the pet treats are produced without the use of artificial colors, preservatives, and fillers like corn, wheat or soy.
Perdue Farms
Perdue is the third-largest chicken processing company in the United States. The Salisbury, Maryland based company generates annual sales in excess of $6 billion and employs approximately 19,000 people.
The company was founded in 1920 by Arthur Perdue and started out by selling eggs. It soon built its first hatchery and later expanded into agribusiness and introduced the PERDUE brand of chicken and turkey.
Today the Company remains family owned and family operated. Its offerings include some of the leading names in natural chicken and turkey, such as the Perdue, Harvestland, Coleman Natural, Coleman Organic, Rocky, Rosie, And The Original Brat Hans brands
Extensive Research Period
Back in April 2015, EnWave signed a Technology Evaluation Agreement with Perdue. Shortly thereafter the latter commenced research and development work with a leased smaller scale REV unit.
The fact that these tests lasted over a year, indicates that they were conducted very thoroughly. Moreover, because Perdue is now willing to spend more money by buying a REV dryer, we’re convinced that market tests went very well. In fact, we wouldn’t be surprised if they already had some distribution lined up.
Conclusion
The agreement with Perdue is yet another one with a Tier 1 player that has gone through an extensive product development phase and that feels that there’s a tremendous opportunity in its market. This is the second royalty-bearing agreement for EnWave with a major meat processing company.
And this is just one of many partners with which EnWave aims to close commercial agreements in the near future. For example, Ocean Spray Cranberries and California Grape Co in the dried fruits market. And Maple Leaf Foods, Jack Link’s, and Campofrio Food Group in the meat snacks category to name a few.
The agreement with Perdue could become another successful one. Full Moon Pet Treats already has lots of experience with producing pet foods and it has substantial distribution in North America.
More and more investors are discovering EnWave and are realizing what a beauty this Company truly is. As we mentioned last week, once the stock price passes the $1 mark it could go fast. Meanwhile, the stock is trading at $1.15, up almost 14% compared with a week ago. This doesn’t mean however that it’s too late to buy EnWave shares. In fact, the Company has only just started its conquest of the dehydration market. Buy recommendation.
EnWave Signs Commercial Royalty Bearing License With Perdue Farms Incorporated, Receives Purchase Order
http://finance.yahoo.com/news/enwave-signs-commercial-royalty-bearing-130000698.html
Mikros Systems Completes Recapitalization to Eliminate Preferred Stock
http://finance.yahoo.com/news/mikros-systems-completes-recapitalization-eliminate-120000111.html
PRINCETON N.J., July 13, 2016 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (MKRS) announced today that it has completed a recapitalization transaction to eliminate all issued and outstanding shares of preferred stock.
The Company previously had four classes of preferred stock, which were exchanged or redeemed for a combination of common stock and cash payments as follows:
Convertible Preferred Stock – $0.165 plus 1.95 shares of common stock per share
Series B Preferred Stock – $0.0825 plus 2.43 shares of common stock per share
Series C Preferred Stock – $2.708 plus 31.27 shares of common stock per share
Series D Preferred Stock – $0.3623 cash plus 5.07 shares of common stock per share
In connection with the preferred stock exchange, Mikros also repurchased 2,084,167 issued and outstanding shares of common Stock owned by the United States Small Business Association. As a result of these transactions, the Company will make aggregate cash payments of $544,017, issue 3,089,806 additional shares of common stock, and eliminate $2,955,433 of aggregate liquidation preferences applicable to its previously outstanding shares of preferred stock. Complete details of the transactions are set forth in the Company’s Current Report on SEC Form 8-K filed with the Securities and Exchange Commission on June 17, 2016.
“These transactions have greatly simplified our capital structure and removed almost $3,000,000 of accrued dividends and liquidation preferences required to be paid prior to any distribution to holders of our common stock. We believe that the recapitalization, combined with our recent strategic corporate moves to diversify the markets and customers we serve, will accelerate the growth of our company and create long term value for our common shareholders,” said Tom Schaffnit, Mikros Director and Chairman of the Corporate Administration Committee of the Board of Directors, which negotiated the transactions.
About Mikros
Mikros Systems Corporation is an advanced technology company specializing in the research and development of electronic systems technology for military, industrial and commercial applications. Classified by the U.S. Department of Defense as a small business, its capabilities include technology management, electronic systems engineering and integration, radar systems engineering, command, control, communications, computers and intelligence systems engineering, and communications engineering. Mikros’ primary business is to pursue and obtain contracts from government and commercial customers. For more information on Mikros, please visit: www.mikrossystems.com.
probably another low revenue quarter since no news on any big orders. No news either of any major commercial partner either, so i figure this quarter will be as blah as the 1st. dead money till 2017.
ghg 2016
http://www.mmm-online.com/agency/ghg-2016/article/506175/
But while one imagines Vos is not upset about any of these developments, she is most enthusiastic when discussing broader health-marketing trends and the opportunities she expects to emerge from them. Take ghg's ambitions to be the agency world's preeminent point-of-care player. Armed with a belief that the POC suite is undergoing seismic change, ghg has invested heavily in a handful of companies and tools. Perhaps the most notable is OptimizeRx, the minds behind a content-delivery platform that helps drugmakers provide on-demand services within the EHR context.
“Right now, what's being delivered on OptimizeRx is financial assistance,” Vos explains. “When doctors have patients in the office, they can touch on a brand and find out right away if financial assistance is available — and if so, [the offer] goes straight to the pharmacy.”
Nice Discussion by Ladder Management
http://wsw.com/webcast/kbw33/ladr/
They even filed for the creation of a CMBS Mutual fund.
Added more again today, anything below $12 and i will keep adding when cash rolls in.
Now would be a good time to announce a buyback or a dividend.
Perion Network: It Can't Be This Bad
http://seekingalpha.com/article/3985222-perion-network-bad
Summary
It does look like continued pressure from a massive lock-up expiration is artificially depressing PERI shares.
At the same time, there are some concerns about the Search business and early performance from Undertone.
Still, a share price near $1 doesn't make sense, given the price paid for Undertone (an acquisition the market loved) and increasing bond prices.
This remains a risky play, but PERI simply looks too cheap.
After years of being a bear on the stock, I turned bullish on Perion Network (NASDAQ:PERI) after its $180 million acquisition of Undertone in December. Shares were at $2.68 at the time; it would be an understatement to say the call hasn't worked out:
source: finviz.com
Honestly, I've been stunned by the magnitude of the decline. Perion management has pointed to the expiration of a lock-up on shares granted in the company's reverse merger with Conduit as providing pressure, but in a call earlier this year (with shares above $2), CFO Yacov Kaufman told me that six core shareholders would hold their ground and hopefully stem the bleeding.
Clearly, that hasn't happened, but there's still reason to think that the continued declines are not necessarily being driven solely by fundamental revaluation. Indeed, there's a bit of a disconnect at Tuesday's close of $1.12 for a number of reasons. I can see some cause for concern, and I'm somewhat regretting trusting Perion after years of questioning management. But I went long at $1.30, since this stock looks just too cheap, and I still see reason to believe the pressure on the stock isn't related solely to Perion's business.
A Disconnect
The recent trading in PERI shares is a bit illogical, in my opinion, for several reasons. First, Perion's enterprise value (including outstanding consideration due to Undertone's former owners) is at $174 million. The company paid $180 million for Undertone barely six months ago. And the market loved the deal: shares rose 80% in a matter of sessions before beginning their long decline just before the lockup expired January 1st. There was some reason for potential concern in the Q1 report, with Perion already projecting lower-than-expected growth from Undertone in Q2. But the stock gained almost 7% on the day of the Q1 earnings release, and it had already hit $1.50 the day before.
There really hasn't been any fundamental news over the past six months to change the implied valuation of Undertone all that much. To be sure, some of the December gains may not have come solely from the value seen in Undertone; there likely was some relief by investors that Perion had put its cash into a profitable business after some questionable purchases in the past. But early performance appears reasonable, and sector valuations in adtech haven't fallen all that much:
RUBI Chart
RUBI data by YCharts
I can see some reason for bringing Undertone's valuation down; I was a bit concerned after the company pulled down directional guidance for 2016 after Q4. But the magnitude of the decline in PERI shares seems to far outweigh any news over the seven months since the transaction was announced, and the current valuation implies either that Perion overpaid (likely by close to 100%) or that the rest of the business is basically worthless.
Perhaps that's the case. But there's one group of investors that don't appear to think so:
source: Tel Aviv Stock Exchange
That's the chart of Perion's convertible bonds. The conversion feature is of little value, with the conversion price at about $8.61, and the bonds appear subordinated to an Undertone credit facility and another secured by legacy Conduit assets, per the 20-F. While the equity seems to be pricing in some risk of Perion's strategy leading to bankruptcy, the bond market - in Israel, at least - seems much more confident.
There simply doesn't seem to be a fundamental reason for such a steep decline, and recent trading certainly seems to imply that a large stake (or stakes) are being liquidated of late after similar sales at the beginning of the year:
PERI 30-Day Average Daily Volume Chart
PERI 30-Day Average Daily Volume data by YCharts
And Perion itself can't do anything to support its stock: per the Q1 conference call, it is prohibited by Israeli law from buying back shares as long as retained earnings are negative. All told, there appears to be a bit of a "perfect storm" relative to trading that might explain some of the unrelenting pressure on PERI's stock price, and might imply that there's a buying opportunity for investors patient enough to wait out this turmoil.
Real Concerns
I do think the sell-off is overdone, and likely magnified by the lock-up expiration and the inability of Perion to repurchase shares (with the market cap at $86 million, even a $5-$10 million authorization could have a significant impact on demand). But there were some concerns in the Q1 report as well, even if the initial response was bullish. To be sure, Perion did beat analyst estimates and its own guidance rather handily. But it's starting to look like Perion sandbags its guidance somewhat, and the bottom-line beat relative to consensus comes from Perion deciding to shut down part of its Grow Mobile business, moving a loss to discontinued operations (on a GAAP basis, that $0.05 shift exactly matched the delta against the two-estimate EPS number).
In Search, revenue fell 6% sequentially, with Perion guiding on the Q1 call for that figure to stabilize. That number looks a bit of a disappointment, with the company having said on the Q4 call that Q4 levels would be the bottom, plus or minus 5%. Margins fell dramatically, as Search revenue fell 5.6% year-over-year but customer acquisition costs nearly doubled. Some of the CAC gains comes from Undertone media buys, but even excluding that spend, CAC was up over 80%, moving from 36.5% of Search revenue in Q1 2015 to 78% in Q1 2016. And it appears Perion was a bit more aggressive in Search than expected, which drove revenue above expectations - enough to more than offset the top-line loss from Grow Mobile - but also means the company continues to be exposed to what looks like a declining business. Perion's revenue is now concentrated in Microsoft's (NASDAQ:MSFT) Bing, and there's still a fear that changes relating to Windows 10 and Edge - or simple policy changes similar to those from Google (NASDAQ:GOOGL) (NASDAQ:GOOG) that decimated the third-party search business two years ago - could further pressure Search profits. The two other major players in the space - AVG Technologies (NYSE:AVG) and Blucora (NASDAQ:BCOR) - have essentially exited, with Blucora looking to sell its InfoSpace division and AVG's Search business limited basically to its desktop anti-virus programs. The continued declines - even if Q1 may have had some seasonality - raises some worry for what is still a reasonably big part of Perion's business.
In terms of the mobile business, the decision to shut down Grow Mobile had been tipped somewhat on Q4, when Perion fully impaired the intangible assets acquired in 2014. But it's still not entirely clear what went wrong there; Perion is focusing on the "high impact" space with Undertone, trying to avoid the "race to the bottom" in the increasingly commoditized adtech space. But on the Q1 call, CEO Josef Mandelbaum said the drivers of a lower-than-anticipated growth for Undertone in Q2 were "a more pronounced shift of advertising budgets to social and in-app". Perion was supposed to have added those capabilities through the purchases of MakeMeReach (social) and Grow Mobile (in-app), both of which were supposed to complement Undertone's more advanced mobile offerings. Grow Mobile's in-app engineers appear to be staying on, and Mandelbaum cited the revenue synergies of Undertone's high-impact portfolio with MakeMeReach's social offerings, but it appears that the integration is a bit slower than hoped. The fact that the businesses acquired by Perion before Undertone aren't benefiting from this shift in the space (and that Grow Mobile has been a bust) also casts a shadow on Undertone: is Perion once again behind the curve in trying to enter a space in which it doesn't have any real competitive edge?
Valuation
Still, the current price seems just too low, even considering those concerns. Full-year guidance was roughly maintained, with Perion now pointing to the high end of EBITDA guidance, based on previous expectations of 50%+ revenue growth and 10-12% margins. That hike doesn't necessarily imply an improved business outlook; rather, it simply seems to incorporate the benefit of shifting Grow Mobile into discontinued operations.
But full-year projections still imply about $39 million in Adjusted EBITDA, a EV/EBITDA multiple of just 4.5x. Interest expense should be about $13 million, capex ~$3 million (adjusted up from the pre-Undertone baseline of ~$2 million), and normalized tax rates should be low, thanks to high amortization and a low Israeli tax rate (25% is the corporate rate, but as a "preferred enterprise" the rate can drop as low as 9%). The free cash flow multiple looks to be in the 4-5x range - which implies outright failure in Search and declines in Undertone, both assumptions which seem far too pessimistic. Even a ~3x EBITDA multiple on Search profits (about $15 million, based on previous guidance relative to Undertone, at a multiple where depressed PERI shares traded before the attempted 'pivot') plus a 6x multiple on Undertone supports the current price, below profitable adtech plays (see the Rubicon Project (NYSE:RUBI) at ~8x 2016 guidance and Criteo (NASDAQ:CRTO) in the mid-teens).
There's risk here: if Undertone gets left behind in mobile and Perion can't develop its 'in-app' capabilities quickly enough, PERI's equity can get to zero down the line. (The outstanding consideration for Undertone isn't based on targets, so there won't be any help there if the acquired company's results turn south.) Perion appears to building in some benefit from political spend, particularly in Q3, which might make 2017 comparisons a bit more difficult by inflating 2016 numbers.
But even with a modestly disappointing performance since the acquisition, a price above $1.50 still seems reasonable (~6x EBITDA, 5-6x free cash flow) and Undertone is still growing, if not at the rate Perion was hoping for in Q2. It does seem likely that a bottom in the stock will come at some point (though I've thought that for some time), and solvency isn't a near-term threat, giving the company some time. And it does seem that the sell-off has been driven at least in part by the lock-up expiration and the inability of Perion, and the lack of interest from other large buyers, to step up in response. The equity market is showing a company with a reasonable chance of imploding; the bond markets aren't. For now, I still think it's equity investors who have the story wrong.
Nice juicy yield from NRZ, never heard of them before. i am new to the REIT game and only have come across JCAP (more speculative) and LADR. My other companies are capital gain only companies.
Nice gain. this is a new position for me. my gain on a REIT is in JCAP, a fairly new REIT, but i got in when there was alot of fear on the company, i got in at $11.07, so cap gains and nice yield so far.
glad i loaded up, seems to be recovering, however, could be a dead cat bounce.
Hiring is a good sign.
Looking to take advantage of this end of world reaction to BREXIT by adding more LADR today. Mr. Market is once again offering me discounts to fantastic companies.
Dipped my toes in today, great management and aligned with shareholders.
I think Yes. Based on the 8K,
1. All shareholders will now be common.
2. 3M shares worth of dilution via a PP with existing shareholders taking up the total amount. Insiders increasing stake? more aligned with common again.
3. with prefferds removed, no one is in front of common when it comes to bankruptcy, sale or merger.
So, it is now in the best interest of large insiders to see increase in share price or a dividend or both.
Is this latest 8K a shareholder friendly move? i am assuming the purchase of the preferreds would be in the interest of common shareholders.
First!!
Looking forward to holding this for a very long time.
yup,
requires serious patience with this one. at least every quarter they are improving with the business. just need to see this go to the bottom line in revenue growth increasing
I thought at $1.30 it was a reasonable entrance price also. but, i believe when they settle down and have a positive EBITDA or EBIT, the share price should turn around. i recall in the Earnings CC that they said they would purchase shares at current prices, however, due to laws in ISRAEL, they cannot do that until they have positive EBITDA or reduction of debt.
Josef Mandelbaum
"And when the stock price went below at a certain level obviously you have to take.... we took an attempt, that attempt is of course our return earnings to be negative. When you have negative return earnings according to Israeli court of law we're not allowed to do buybacks until you have positive return on earnings."
Unidentified Analyst
Okay and then regarding the buyback. Just trying to get some more details. What are the hurdles you have to go through in this really quite system for you to get approved all to do buyback?
Yacov Kaufman
Well basically it goes, its start all with dividends. Basically if you do not have positive trade earnings or any distribution dividends is just as limited by they essentially have positive retained earnings. But of course and other regulators being buybacks as being dividends and that's what we restricts about. In order for you to have do it through dividends or do buy back shares to have positive retained earnings.
There is a limited possibility to try to distribute dividends and even if you do not retain earnings. But as you mentioned you have to go through a core process and it is usually limited to companies that are not leveraged. Perion is leveraged and therefore the probability of our scaling such consents through the core system once we've approached all the orders is far-fetched to say the least.
Initiated a position in PERI at $1.30, valuation is too compelling at current prices.
nope,
could you copy and paste the award in here please.
trying that link, not working.
OptimizeRx (OTCQB:OPRX): Q1 EPS of -$0.01 beats by $0.02.Revenue of $1.76M (+18.1% Y/Y) beats by $0.06M.
http://seekingalpha.com/pr/16481843-optimizerx-corporation-reports-first-quarter-2016-results
OptimizeRx and RxWiki Partner to Bring Mobile Co-Pay Coupons to Network of 1,300 Community Pharmacies
http://finance.yahoo.com/news/optimizerx-rxwiki-partner-bring-mobile-123100911.html
Mikros Systems Navy and Commercial Customers Sign Up for Continued Hardware and Software Product Support
http://finance.yahoo.com/news/mikros-systems-navy-commercial-customers-133600962.html
i am sure it will probably drop back down to 0.10 on 100 shares.