Even in a week like this there were some company-specific news stories worth noting.
Western Goldfields: (WGDFF.OB) announces http://biz.yahoo.com/prnews/070801/to446.html?.v=23. Obviously, the company is still losing money because of the Mesquite Mine build out. “Western Goldfields made significant progress in the first six months of 2007 toward bringing the Mesquite Mine into full production,” said Chairman Randall Oliphant. “We have met all of our second-quarter milestones and we have brought forward anticipated full production by three months. Everything is now in place to make Mesquite a successful producing mine and to establish a platform for the growth of Western Goldfields.” With the stock up over 30% since my purchase two months ago, I don’t mind waiting. Advocat: AVCA acquires seven Texas operations out of bankruptcy. A number of institutional investors I know hoped that the company would shop itself around rather than pick up other operations. CEO William Council contends that the company got a bargain: “The total of the acquisition price, costs of the transaction and additional capital expenditures expected result in a multiple that is less than 4 times EBITDA, based on the 2006, pre-bankruptcy period.” Maybe, but note that the same press release says that EBITDA for the operations dropped off in 2007. Traffix (TRFX) is dissected by the 10-Q Detective. David Phillips’ review of this internet/email marketing company is a must read for microcap investors. In a strange coincidence, I bought Traffix last week for many of the same reasons he highlights. Air Industries: announced a small order. Air Industries gained Sea King helicopter as a customer, but the initial order and other recent orders were under $500,000. More importantly, the company confirmed that its firm backlog was $37.3M and anticipated backlog was $65M as of March 31, a figure that should expand when Sigma Metals is integrated.
Disclosure: Long WGDFF.OB, AIRI.OB, TRFX. No position in AVCA.
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