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Zeff Capital filed a 13 G today stating it no longer owns over 5% outstanding shares.
Look like they sold roughly 600K shares (5.1% ownership to 3.4% ownership) so they apparently are on their way to liquidating position. They still own 1.2 MM shares so plenty of headwinds to share price.
Either they were caught surprised by the ADEPT funding cut and are not happy with direction of the company or just took the opportunity to move onto better opportunities.
The timing of the add on funding of ADSSS after the notification from the Navy with regards to ADEPT (and burying the filing on a Saturday) does not really speak to Mikros management credibility. They could have managed the APDEPT message with the ADSSS funding to calm investors but shame on me for thinking Meaney knows what he is doing.
I did not sell. I still hope for a sale of the company but now would gladly take $0.25-$0.50 per share at this point. Just brutal.
And no press release for the 2nd quarter just the 10-Q buried in SEC filings.
No open ADEPT orders and no backlog.
Nothing on commercial status.
This has gone from frustrating to worrying for me now for the first time in years.
I have been hesitant to criticize the son-in-law Velcro but so far you have been spot on.
Well put Velcro. My sentiment exactly. I was expecting much more.
I didn't know that Bobchar. Thanks for the history lesson.
I am curious what you (or anyone on the board) feels is a realistic share price for Mkrs. We have roughly $15MM market cap with 2018 FY revenue probably around $8.5-9MM. Based just on the Navy contract awards and annual revenue of say $10MM over the next few years, I don't see mkrs trading much higher that $0.50 which is a market cap of 2 times sales but I don't know of any other comps so who knows.
The commercial potential is probably what gives this upside but no way right now of valuing this. So perhaps a stock price of $0.40-$0.50 per share is fair until we see real commercial impact (real revenue or announced future contracts.) And this probably means silence for several more months.
Hope I am wrong but this is my view right now.
The revenue is disappointing to me. With the announced contracts and backlog, I have been waiting for them to consistently report quarterly revenues of $3MM plus or show annual revenue of >$10MM.
At least they mention Elliot Lewis in the Press Release but still no idea what to expect. Malone stated 1 year ago to expect significant commercial revenues within 12-24 months. I don't feel very confident right now. Hope I am wrong but we might be heading into another dark silence until the next mandatory 10K filing April 15th.
When I saw the they are presenting tomorrow at the LD Micro Invitational my hope was that it would be perfect timing today or tomorrow morning to release some type of new PR to give additional momentum for the presentation and investor discussions. I have seen this many times before that a company coincides press releases before Investor conferences.
Not expecting it but if there is one, could be a good sign of a new approach by our new CEO to promote the stock. I still think that the wording of last months Q 1 press release suggests strong revenue quarters are just beginning.
Basic Revenue Projections
Please help me out here. In the Investor Presentation Velcro posted, the company shows the 83MM USD in contracts awarded in 2016 and 2017 (ADSSS & ADEPT). It also states that $14MM of these contracts were delivered in 2016/2017. This means that there is $69MM remaining for the 5 year period 2018-2022. This means an average of roughly $14MM in revenue for this time period.
The highest revenue in it's history is roughly 7MM so we should be looking at double this for the next 5 years just based on announced contracts. This does not include any commercial revenue.
We know as Bobchar posted that ADSSS is in line for another $50-100 MM in contract award in 2021, I believe, so the top line revenue should be steady at $14MM and above for the foreseeable future and hopefully the bottom line will be driven with higher return commercial business.
The stock trades at $0.36 per share which means I should be buying more right?
I don't get it.
Hey Velcro, I am still hopeful that we will see a more aggressive communication strategy from Malone. He has only been CEO for half year or so. I will give him a little patience.
That is why I stated the next few weeks will be interesting to see if the approach will change or if we will see them regressing further to fend off unwanted advances from Zeff.
Be very interested though if you hear back from them. I applaud the initiative!
TopDog,
I think the next few weeks will be interesting. Bobchar discovered the Navsea award. Silence from Mkrs. Zeff Capital disclosure form showing 1.8 mm shares. 10k released and more silence from Mkrs. Q 1 results coming in 4 weeks or so. Will we see an aggressive communication from Mkrs highlighting hopefully solid Q 1 results with Navsea news and, more importantly to me, real progress on commercial impact?
If we see silence/muted response, perhaps Mkrs is considering to go private to avoid dealing with the nerve of shareholders expecting share price performance. It is sad that the emergence of Zeff is my main reason for optimism right now.
By the way, I hope Zeff tracks this board. I bet the posters of this board have more than 1.8 mm shares accumulated as a group. I am all in for an alliance!
The results are unremarkable based on the announced contracts and the selling is understandable from my view point based on the numbers.
I was not happy to learn of the son-in-law relationship of the new President with Meaney. I wish this would have been disclosed when they initially announced his hiring. It reeks of Meaney running MKRS as his private family owned company and I worry about key personnel leaving over the nepotism.
However, as I am a glutton for believing in the Pot of Gold at the end of the MKRS rainbow investing thesis, this statement from the Press Release will keep me here for a while longer..
We believe that commercial opportunities represent a vast and relatively untapped market for us to substantially increase our business over the next 12 to 24 months and we will continue to invest engineering, marketing and other resources to execute this strategic initiative.”
I would sell if not for this statement or at least start reducing my position.
His background does not suggest someone looking to grow business but rather to help with selling of business assets. Lazard is a major player for advising with M&A activity whether it is for outright sale of the company or some other business asset transaction.
The end game is getting closer (at least I hope so!).
Agree with you 100% Hweb. I was disappointed in the result. Was hoping we had established a quarterly revenue number close to $2MM. Last Q 4 revenue was about $2.3 MM so the comp for this year will probably show a sizeable drop. The full year figure though will be up regardless of Q 4 revenue as YTD revenue is almost on par with full year 2014 revenue.
But the most frustrating thing for me is barring any change of form from Meaney, we are in radio silence until March 31st, 2016 when they need to report Q 4 and FY results. Hopefully, we will see some new meaningful commercial order before then but not holding my breath. I believe I posted exact same message here last November.
Frustrating.
Velcro, looking at the agenda, I do not see mkrs with a formal time slot so not sure if they will be participating.
Thank you very much posting your findings Bobchar. Always much appreciated.
I wonder since mkrs is presenting at a microcap conference next week if we will see a formal Press Release on this development since I would assume this would be part of the presentation.
Thanks again
Topdog,
$3 per share would give mkrs a market cap of close to $100 million. I don't see this as realistic though nothing would make me happier. I agree with HWEB that if they can be close to $2 million in quarterly revenue which seems possible with the backlog, then I think a $0.75-$0.90 per share could be possible. If they announce a commercial deal then higher values may come into play.
I have not been able to find a comp to Mkrs so I am all ears if someone does.
For me, what makes this Q frustrating is we are now looking at March 30th for Q4 revenue so I hope Meaney provides some other positives next week but not holding my breath.
Good luck
Check out Raging Bull article. Very nice summary. Explains the recent volume and hopefully (for me 10 long years holding shares) we get rewarded soon.
http://seekingalpha.com/article/2218253-a-sea-of-change-on-the-horizon-for-mikros-systems?
Any guesses on Q 2 revenue? I did not catch Meany's guidance. Oh, I forgot, he does not talk to us shareholders....