Replies to post #22419 on Savvy Trades and Investments

[dmmm]

Looks interesting, thanks for sharing.

[nelson1234]

I agree with dm, looks interesting...thx.

[hweb2]

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.”

[researcher59]

Swick: SIF -1.03 to 7.47 after posting a loss of (0.38) EPS excluding a tax benefit for Jun Q3. Do you still feel this is a good turnaround play for 2017 ?

CEO comments from earnings pr -

New CEO Peter Knapper stated, “My first 40 days here at SIFCO have been very busy as I’ve visited all of our locations and met with the leadership teams and their direct reports. I am excited to be working with this talented group of professionals and look forward to helping the SIFCO team leverage our strengths and capabilities to create greater value for our customers, associates, and shareholders.”

Mr. Knapper continued, “SIFCO’s third quarter results were below our expectations and our capabilities. We continued to be challenged by soft market in Europe as well as throughput constraints here in the U.S. Our order backlog remains strong, but we have to improve our on-time delivery. Our top priority is the customer. We must be committed to delivering quality products, on-time within a safe working environment. The management team will be focusing on removing the barriers that keep us from processing product through our plants efficiently and effectively and we are already working to develop a culture that will allow us to react quickly to changes in market conditions.

Again, I’m excited to be part of the SIFCO team and look forward to reporting much better results in the future.”