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Erik Wright  

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  • Everyone Wants Their Hands On The Prepaid Card Industry [View article]
    3Pea International, Inc. Reports Record First Quarter 2013 Results

    First Quarter 2013 Highlights:

    •Revenues increased 42% to $2,111,037 for the quarter ended March 31, 2013 up from $1,484,592 for the quarter ended March 31, 2012.
    •Operating income increased 150% to $240,781 for the quarter ended March 31, 2013 up from $92,228 for the quarter ended March 31, 2012.
    •Net income increased 196% to $226,405, or $.01 per share for the quarter ended March 31, 2013 up from $76,390, or $.00 per share for the quarter ended March 31, 2012
    May 15, 2013. 09:58 AM | Likes Like |Link to Comment
  • Pembina Pipeline: Forget Keystone, Get Infrastructure Expansion With No Hassle [View article]
    I believe they are distributing cash they do have. If you look at their adjusted Operating Cash Flow for 2012 (which adjust for acquisition related cost and represents the normalized yearly cash flow) it was $493.8M. If you wanted to use the actual operating cash flow it was of $359.8M. They paid out $181.14M in dividends for 2012, since so many people use the DRIP plan (approx. 52% of share holders) the actual dividends paid out does not represent that much of the operating cash flow. Although you could argue that they spend more in their investing activities than what they retain in free cash flow, they are financing these projects at much lower costs than what the actual return will be on the project. (ex: they issued a unsecured 10 year note for $450M at 3.77%, for which i'm sure the funds will be used to obtain a ROI of more than 3.77% which would therefore be accretive to shareholders.)
    Mar 10, 2013. 04:09 PM | 1 Like Like |Link to Comment
  • Pembina Pipeline: Forget Keystone, Get Infrastructure Expansion With No Hassle [View article]
    Thanks for the feedback Chris, and they do definitely have a great DRIP program, saves them from paying out lots of dividends too and a great way for investors to accumulate shares on a monthly basis.

    Nice announcement by PBA today on the "open season":
    Mar 7, 2013. 10:01 PM | 2 Likes Like |Link to Comment
  • Pembina: Oversold And Sinking For No Good Reason [View article]
    I hold PPL.TO (Canadian stock exchange) and have been trading PBA in the short to medium term (got stopped out at 25.90 before this article got published) which is why I said I do not hold PBA but may initiate a position in the next 72 hours. I do not currently hold it.
    Jul 3, 2012. 09:50 AM | 1 Like Like |Link to Comment
  • Pembina: Oversold And Sinking For No Good Reason [View article]
    Thank you! I have also owned Pembina along with interpipeline fund for quite some time it is ridiculus to see the way some people see this company as they do not understand the business model nor the company itself.. just look at the yahoo msg board and you will see many people this way (or one with multiple ID's... The acquisition in the long term is a great addition to Pembina but short term the integration onto the NYSE has caused the beta to go up due to an increase in volatility and some long term holders that were use to the extreme stability have been scared away. The dividends are great along with very good stable growth to come.
    Jun 27, 2012. 06:46 PM | 5 Likes Like |Link to Comment
  • Worldwide Debt Crisis Unravels: Doomsday Scenario for the Markets [View article]
    Here's interesting news that just came out:
    Consumer borrowing up in June by most in 4 years
    Borrowing jumped $15.5B in June; Americans lean on credit cards and loans as economy struggles
    Aug 8, 2011. 12:46 AM | Likes Like |Link to Comment
  • Worldwide Debt Crisis Unravels: Doomsday Scenario for the Markets [View article]
    I do not believe that the US debt ceiling should not be raised ever again in fact it will have to continuously be raised and it would be better to just eliminate it to stop the hassle of having to go back to raise it each time. The argument is simply it will continue to get worse because they will keep running huge deficits and interest payments will continue to rise as they borrow more and more. The only way of stopping that is by cutting costs and to stop running deficits which we all know is quite hard for the US government to do. I have to agree with you things are not that bad now but will eventually get much worse if we keep borrowing at this rate.
    Aug 8, 2011. 12:26 AM | Likes Like |Link to Comment
  • Worldwide Debt Crisis Unravels: Doomsday Scenario for the Markets [View article]
    thank you for pointing that out, you are correct that the debt to GDP figures at times are not completely reflective of a country's liability situation. It is simply for illustrative purposes since regardless how we shape it debt figures per nation are still largely growing in proportion.
    Aug 8, 2011. 12:04 AM | Likes Like |Link to Comment
  • Worldwide Debt Crisis Unravels: Doomsday Scenario for the Markets [View article]
    The chart is an average of what is on the cards as a liability at a given time, if you always pay it off you are among those that do actually completely pay it because many American citizens have multiple credit cards and many only pay the minimum payment. I realize that this is not everyone and many do always pay on time, but the problem is getting worse especially when the unemployment rate is so high and there are a lot of struggling households in the US.
    Aug 7, 2011. 11:59 PM | Likes Like |Link to Comment
  • Gulf Resources: A Compelling Opportunity in the Bromine Market [View article]
    I have not visited the factories Bazooka, I have only spoke to the Crocker and Linda in the past. I am no longer invested in GFRE, took out some of my low stop loss orders in the 7's quite awhile ago. Needless to say I am quite thank full I had those. I have been observing GFRE on a daily basis, seems like it could be a great entry price because it is absurdly valued but I would still remain very cautious, China is out of favor. You probably can do well investing in greatly undervalued China stocks that actually will make it through this scrutiny phase of Chinese companies and in the long run when they survive this mess of short sellers, fraud write ups, unknown research companies writing absurd reports you will be greatly rewarded. The trick is how to know how long this absurdness will last? As well, how to know legitimate from illegitimate? I am with the many others that believe GFRE's business is very hard to fake, land, registered Bromine authorities, a very "unsexy" sector (if someone would be trying perpetrate fraud you think they'd pick a more known sector), limited licenses given out in China, supplier to larger known companies.
    I believe this but really what is ones belief worth when others can easily right fraudulent reports and play on the fear of others? I believe the SEC should be doing a better job in cracking down on this, for now I am not invested in it but I do know I may regret it if it pops. I am however not ruling out starting a new position in the future.
    May 6, 2011. 06:40 PM | Likes Like |Link to Comment
  • China Clean Energy: A Stellar Opportunity in China's Clean Energy Sector [View article]
    The conference call and earnings were spectacular.
    The company answered very good questions and the prospects for the company seem very prosperous. Its actually ridiculously undervalued at the current share price and its nice to see that management thinks the same.

    Some of the highlights:

    -Prices increased from 1300 to 1500, in 2009 to 2010 for specialty chemical products. The company stated prices were even higher in Q4, near 1620, and that Q1 was looking even better.
    -There was a mention by the CFO that Q1 2011 was better than Q4 2010.
    -Current capacities are roughly 95% for specialty chemicals and 20% for bio diesels. Although utilization rates are higher for specialty chemicals they have been shifting production to concentrate on higher margin products which should help boost earnings even more.
    -the company is applying to have tax rate reduced from 25% to 15%.
    -They are capitalizing on their own provinces demand to lower transaction costs such as shipping costs as well as benefit from buyers picking up products directly from the factory which has reduced costs drastically.
    -the company anticipates to acquire a feedstock supplier with cash on hand and current cash flow which should boost margins by an additional 3-5% as well as add to earnings.
    -the company seems to be leaving towards the AMEX and as per my question it appears they do not want to do a reverse split and they believe that the share price will appreciate above 2$ within the next year. In my opinion this portrays the confidence management has in their company and their belief that the share price is undervalued.
    -In the future the company anticipates to expand through building another production plant with warrant money (when price reaches over $2 and after acquiring a feedstock supplier)
    -The company anticipates growing shareholder value through issuing more PR's and updates; attending more conferences to increase visibility of the company in the public's eyes, increasing its earnings and reducing risk by securing a feedstock supplier as well as listing onto a major exchange.
    -The Guidance of 0.36 does not take into account any acquisition, therefore in the event of an acquisition we can expect EPS to be higher.
    Mar 31, 2011. 11:51 AM | Likes Like |Link to Comment
  • Gulf Resources: Exploring Recent News [View article]
    Those are the words I received from the IR firm in an email. Basically I believe it means that due to the higher prices of bromine it is though to find acquisitions at a reasonable price therefore they are trying to get the most at of their current production base. I also think it might refer to them not operating at full capacity to make sure they get the longest life span out of their current land and assets.

    thats my insight, hope it helps,
    Mar 31, 2011. 11:49 AM | 4 Likes Like |Link to Comment
  • China Clean Energy: A Stellar Opportunity in China's Clean Energy Sector [View article]
    Thank you Thomas,

    I am proud of CCGY's earnings, absolutely amazing results. With the best forward looking plans for the company and very nice projected EPS of 0.36 (This puts forward P/E at 2.777 currently). Also planning to make acquisition of potentially a feedstock supplier to grow and stabilize margins with CASH on hand! I have not seen many china small cap's say they will acquire with strictly cash. I plan to participate in the conference call tomorrow, I wish all CCGY investors or followers the best of luck and it appears it will be a prosperous year for China Clean Energy and hopefully a rewarding road for shareholders as well.
    Here are the highlights:
    Fourth Quarter 2010 Highlights

    * Revenue totaled $18.1 million, up 271% from $4.9 million for the fourth quarter in 2009
    * Gross profit totaled $4.3 million, up 378% from $0.9 million in the fourth quarter of 2009
    * Gross margin increased to 23.7%
    * Operating income was $3.8 million, compared to $0.3 million in the fourth quarter 2009
    * Net income was $ 2.2 million or $0.07 per fully-diluted share, compared to net income of $0.6 million or $0.02 per fully-diluted share in the fourth quarter 2009
    * Adjusted net income (Non-GAAP) was $2.9 million, or 0.09 per fully-diluted share for the fourth quarter of 2010, compared to $0.3 million or $0.01 per fully- diluted share in the comparable period of 2009. A table reconciling adjusted net-income, a non-GAAP measure, to its nearest GAAP measure is available elsewhere in this release.

    Fiscal Year 2010 Highlights

    * Total revenue increased to $59.0 million, up 270% from $15.9 million for the full year 2009
    * Gross profit totaled $12.2 million, up 260% from $2.9 million for the full year 2009
    * Gross margin was 20.7%, up from 18.5% for the full year 2009
    * Operating income was $10.2 million, up from $0.9 million for the full year 2009
    * Net income was $6.4 million, compared to a loss of $0.3 million for the full year 2009
    * Earnings per fully-diluted share were $0.20, compared to a loss of $0.01 in 2009
    * Adjusted net income (Non-GAAP) was $7.8 million, or $0.25 per fully-diluted share
    * Cash and cash equivalents totaled $13.6 million at year end

    Financial Condition

    As of December 31, 2010, China Clean Energy had $13.6 million in cash, approximately $15.1 million in working capital, and $5.3 million of debt. Stockholders' equity at December 31, 2010 stood at $39.3 million, or approximately $1.25 per share.

    Business Outlook

    "The macroeconomic environment in China remains positive, and we are excited with the opportunities to continue to deliver positive results in the quarters ahead. We expect our revenue and operating income in 2011 to be approximately $75 million and $14 million, respectively, as we benefit from our increased capacity as well as improving sales mix. We would also expect to see adjusted earnings reach $0.36 per fully-diluted share in 2011," stated Mr. Tai-ming Ou, China Clean Energy's Chairman and CEO.

    "As we look to the future, we hope to leverage our strengthening balance sheet and improving free cash-flow position to acquire upstream feedstock suppliers in the second half or 2011, with the goal to expanding our gross margins and securing feedstock supply. We believe that pursuing a partially or fully integrated upstream strategy will reduce the volatility of our operating results and maximize shareholder value in the long-run. We are currently actively searching for acquisition candidates, and we expect to be able to finance an eventual transaction with cash on hand as well as cash-flow from operations," concluded Mr. Ou.
    Mar 30, 2011. 11:30 PM | Likes Like |Link to Comment
  • Gulf Resources: A Compelling Opportunity in the Bromine Market [View article]
    The following are the answers the IR firm sent me regarding the companies response to my questions;

    1) Is GFRE actively trying to negotiate with HAP to ease the selling pressure, perhaps using the buyback money purchase the shares from them?

    The company cannot comment on this matter at this time.

    2) When does GFRE plan to issue some sort of guidance?

    The company expects to provide guidance before the release of Q1 2011 results.

    3) Will GFRE try to gain any more institutional coverage?(Brean dropped them last year and I believe only Openheimer is left, it would help the companies falling share price).

    The company is in discussion with other sell-side analysts.

    4) Why was there such a large drop in utilization rates from 2009 to 2010?
    There are three main reasons for the drop in utilization rates: 1) Because bromine resources in Shandong are limited, the company is trying to control the production capacity and maximize the return of its access to bromine. 2) The production equipment is old. 3) Depletion of bromine in the Shandong area is a minor reason for the dropped utilization rate.

    Although not the most complete answers does help to clear up a few things. As for HAP I am assuming they are dumping some shares which can be pressuring the share price as seen recently. On top of that more China reverse merger companies have been halted in trading such as NIV and CIL. This whole Chinese small cap sector is incredibly out of favor. Although I think the company is legitimate, the fundamentals are incredible, and it is trading at a tremendous valuation, based on the sectors terrible relative strength, the HAP overhang, no new news and making a new 52 week low, it is not looking good.
    It could be argued that as a contrarian investor taking a position at these prices could be favorable and I do still believe the company will report an even stronger year in 2011 with higher production and higher prices. As well at this price management would be ridiculous to not buyback shares or take the opportunity to buy them from HAP, for all we know this could have been part of a plan to make the stock price drop to buyback more, if that was the case having no Q&A was smart. But for all investors this can be quite a wild ride.

    Lets hope for the best...
    Mar 24, 2011. 05:02 PM | 1 Like Like |Link to Comment
  • Gulf Resources: A Compelling Opportunity in the Bromine Market [View article]
    I have emailed Linda and am waiting on her reply,
    personally utilization rates are down due to government constraints in the 4th quarter. Which were mentioned that utilization was at 60% in Q4. I have also emailed the IR concerning this but do believe this was the main factor. I believe production should ramp up with the new lease and acquisitions which should boost bromine production, not to mention sales will be higher with higher recorded prices.
    As for initiating a position in GFRE I would advise to hold off before it tests the prior resistance around 6.33 and holds it. Could be dangerous if it breaks. But thats just my technical insight which could be irrelevant to when this stock decides to turn around. I personally believe it needs some type of news or catalyst before it switches directions in its trend. For now, it is just getting more and more ridiculously priced.
    Mar 23, 2011. 01:02 PM | 1 Like Like |Link to Comment