SIF does look interesting. Nice work Swick! I picked up a few shares today. Seems to be plenty available at the $8.25 bid fyi.
Stock doesn't look like much yet. But with all those 1-time costs behind them and some easy comps coming up, they certainly have the potential to post some rather dramatic earnings improvements.
Where did you see fiscal Q3 & Q4 are seasonally better quarters? Owned SIF years ago and thought I remembered some seasonality. But saw this in the 10K under 'Customers' so wasn't sure:
No material part of SIFCO’s business is seasonal.
Stock sure has been clobbered. SIF was $14 a year ago and $30 in early 2015. So def has plenty of recovery potential if they get profitability back on track.
Hope you're right about the new CEO. This commentary from the retiring CEO in the last earnings PR seems to bode well for upcoming Q3 & Q4 results:
CEO Mike Lipscomb stated, “While still short of our expectations, the second quarter of fiscal 2016 showed improvement over the first quarter of this year and over the same quarter in fiscal 2015 on a continuing operations basis. We continued to incur one-time costs in the quarter related to the delayed filing of our 2015 Form 10-K. With the filing completed in late January, further cost impact from that experience will not affect the future quarters of fiscal 2016. Despite a challenging first half, SIFCO has continued to generate healthy cash flows, as evidenced by an over $10M reduction in debt since the beginning of the fiscal year.
“Over the past several years, our customers have been scheduling deliveries later in the year, and we remain well prepared to meet their demand in the 3rd and 4th quarters. The expansion of our plant in California is progressing well and we are on schedule to occupy the new space in July. I’m proud of the work the team has done and we all remain committed to driving continued operational improvements across all of our plants.”
