Chembio: A Potentially Undervalued Diagnostics Biotech [View article]
Do you think there are other companies that might like to license CEMI's DPP method?
Also, you mentioned the TTM P/E of 6.45x. For the December year (the TTM now) the company earned 11c per avg. share diluted. At 4.60 per share the TTM P/E for 12/31/12 is 41.8x.
I think you were using TTM ended Sept. 2012 that included the special income tax credit in the Dec. 2011 quarter. That credit was non-recurring and not from operations.
It is commendable and extraordinary the way CEMI has built its leading position without using debt and actually earning money.
The Eastern Company: A Value Play With Major New Product Potential [View article]
It appears that CCV (part of The Eastern Company) is expanding rapidly due to new applications for their Sandwich Panel Technology products. What's key is the fact that Eastern's Eberhard division is already a major provider of truck latches and hardware, thereby creating new markets for both Eberhard and CCV.
It appears that future uses and applications of SPC are open-ended, driven by increasing demand for energy-saving products.
To put their long-term debt in perspective, even if you deduct their $6.0 million of long-term debt from their $18.5 million of cash balances, Eastern would still have $65.8 million of Current Assets vs. only $14.9 million of Current Liabilities.
The Eastern Company: A Value Play With Major New Product Potential [View article]
On Feb. 14, 2013, subsequent to my writing up this report on The Eastern Co., Lynn E. Gorguze filed a form 13-G with the SEC, disclosing owning 451,156 shares or 7.3% of Eastern.
In this report I noted the sharp decline in NSB's holdings. However, I now suspect that the holdings of Lynn E. Gorguze in Eastern had formerly been included in NSB's holdings, suggesting that part of the decline in NSB holdings were in fact from Gorguze's filing directly.
Since Cameron Holdings---of which Lynn E. Gorguze is President and CEO---owns Henderson Enterprises (trucking), I interpret Gorguze's ownership in Eastern as that of an informed investor, one who understands the importance of Eastern's Eberhard Manufacturing Company (trucking hardware).
The Eastern Company: A Value Play With Major New Product Potential [View article]
I don't know breakdown of their military work. But, it's not much now.
Future upgrades to Humvee could be held back, I suppose. Unlike a few years ago, those military contracts tend to be up and down and not much built into stock price (like their OEM industrial locks, latches, and laundry business).
Gold And U.S. Government Debt: Highly Correlated [View article]
Nice work. The trendline on debt issuance should be controllable, however, that is not the case with the price of gold.
For instance, one cannot "print" gold if the supply of gold is tight; one cannot richen ore grades when the metal is needed; one cannot control public sentiment of holding gold vs. fiat currencies; and one cannot get a quick environmental government approval any time you want it.
The supply side of gold is the tricky issue to define.
The Eastern Company: A Value Play With Major New Product Potential [View article]
alaskapnp- Eastern sells primarily to large OEMs that require high-volume shipments of thousands of product variations. Over the last 50+ years Eastern has refined its manufacturing methods so that they can compete in the marketplace. Beyond the company's massive plant and machinery assets, they have extensive patents that protect their intellectual property as well as having proprietay methods of manufacturing that have been developed over the years.
Looking on the back of a Sesamee lock package, I see that this particular combination padlock with SearchAlert features has 5 patents listed, plus "other patents pending."
The company has invested $10.3 million in property, plant & equipment in just the last three years. And I note that they have accumulated depreciation of over $30 million.
Any competitor would have many hurdles to compete with Eastern's over 10,000 products serving high-end OEM customers.
I've followed the company for 15-20 years. The Company's headquarters building is nearby.
Buy Chesapeake And Get Rich: The Story Of Immense Energy Resources [View article]
It seems there is now a compelling argument for using natural gas for electric power generation. Does anyone know how much annual gas would be used for generating 1% of U.S. electric power used?
Baltic Trading Limited: Hidden Gem In Stormy Seas [View article]
Hammer- I see by your profile that you are bearish on the US dollar. Baltic Trading and Genco will soar with continued weakness in the dollar. Since the day before the Fed spoke, the dollar has weakened every day; and the charter rates have risen every day.
Don't worry, the banks will not tolerate more ship loans. They first have to have their current loans start amortizing principal.
"The last man standing" theory applies here. Both Genco and Baltic Trading have a good chance to benefit from tightening charter rates due to lack of financing and scrapping of old vessels.
Baltic in particular has a fairly low risk level given its conservative financial structure.
Rather than speculation on use of Facebook, look at the facts as reported by as to growth over the LAST TWO WEEKS: http://bit.ly/S1KTm9
And note here that Instagram is even higher than Microsoft app on Facebook. Instagram is up to 30 million MAU. Brilliant move by Mr. Zuckerberg. http://bit.ly/QebHfy
Mobile is cannibalizing PC usage so a lot of the PC usage figures show slow growth.
There was some report recently that showed that FB was "killing" Google on mobile ads.
You refer to mobile not big at FB yet. Are you kidding? Imagine the guts and commitment of Mr. Zuckerberg of changing to native coding.
The upcoming supply of stock will help to satisfy rising commitments by fund managers. The problem is a lot of those RSU holders now being freed up will not just dump their shares. They will feed it out over 2-5 years.
Baltic Trading Limited: Hidden Gem In Stormy Seas [View article]
Regarding FMV and BALT valuation-- The market is now paying the following for BALT 3.41*22,712,088 or $77,448,220
Now you have add the debt outstanding if you want to just own the ships free and clear. So, you must pay off net debt of $101,250,000 less cash on hand of $3.2 million. Or you must pay off $98,050,000. Therefore your total cost of the ships is: $77,448,220+98,050,000 or $175,498,220
This $175,498,220 amount you pay is substantially below the fair market value of the ships of $225,000,000. Or, if you paid the stock price today of 3.41, you would buy the ships at a discount of $50 million.
Therefore that discount of $50 million is the potential of the stock which works out to $2.20 per share of upside.
But we must remember that the above calculation is in a very depressed market. If the Baltic index rises, the FMV will rise too, thereby increasing the upside more than $2.20 from today's $3.41 per share.
Another way of looking at it is, the price of Baltic Trading could increase $2.20 per share and you would still be buying ships at a fair market value. That 2.20 provides your margin of safety if you are a buyer of ships.
But the market knows that Genco controls 84% of the vote so any takeover bid for BALT would have to be close to fair value of about $5.61.
The stock seems to be an increidble value since the structure of BALT is so "clean"---they outsource management sevices etc. so a buyer could just waltz in and own the company. In most companies you have to handle all sorts of labor deals etc. In BALT's case, all you need is a signature from Genco.
Facebook: 'Hey 19' Are You 'The Wall' [View article]
A good way to test whether the longs or shorts are right is to see who is more vocal. It seems to me that before Mr. Zuckerberg's interview just about every single SA contributor was bearish. When the long list of SA contributers are on one side, chances are they are wrong. I wonder how many analysts will now all become bullish?
The repetitive hackneyed comments about the freed-up stock are really getting tiresome.
FB is widely traded and I suspect the earnings release 2 days before the overhang unlock will probably give pause to the holders to sell. After all, they have had a long time to take protective steps, like buying puts or shorting the calls. These guys no doubt are pretty savvy.
Chembio: A Potentially Undervalued Diagnostics Biotech [View article]
Also, you mentioned the TTM P/E of 6.45x. For the December year (the TTM now) the company earned 11c per avg. share diluted. At 4.60 per share the TTM P/E for 12/31/12 is 41.8x.
I think you were using TTM ended Sept. 2012 that included the special income tax credit in the Dec. 2011 quarter. That credit was non-recurring and not from operations.
It is commendable and extraordinary the way CEMI has built its leading position without using debt and actually earning money.
The Eastern Company: A Value Play With Major New Product Potential [View article]
It appears that future uses and applications of SPC are open-ended, driven by increasing demand for energy-saving products.
http://bit.ly/17LaZRK
Micro Caps Can Be Especially Risky In The Russell 2000 [View article]
To put their long-term debt in perspective, even if you deduct their $6.0 million of long-term debt from their $18.5 million of cash balances, Eastern would still have $65.8 million of Current Assets vs. only $14.9 million of Current Liabilities.
The Eastern Company: A Value Play With Major New Product Potential [View article]
In this report I noted the sharp decline in NSB's holdings. However, I now suspect that the holdings of Lynn E. Gorguze in Eastern had formerly been included in NSB's holdings, suggesting that part of the decline in NSB holdings were in fact from Gorguze's filing directly.
Since Cameron Holdings---of which Lynn E. Gorguze is President and CEO---owns Henderson Enterprises (trucking), I interpret Gorguze's ownership in Eastern as that of an informed investor, one who understands the importance of Eastern's Eberhard Manufacturing Company (trucking hardware).
The Eastern Company: A Value Play With Major New Product Potential [View article]
Future upgrades to Humvee could be held back, I suppose. Unlike a few years ago, those military contracts tend to be up and down and not much built into stock price (like their OEM industrial locks, latches, and laundry business).
Gold And U.S. Government Debt: Highly Correlated [View article]
For instance, one cannot "print" gold if the supply of gold is tight; one cannot richen ore grades when the metal is needed; one cannot control public sentiment of holding gold vs. fiat currencies; and one cannot get a quick environmental government approval any time you want it.
The supply side of gold is the tricky issue to define.
Sell Newmont: Operation, Production, And Macro Headwinds [View article]
The Eastern Company: A Value Play With Major New Product Potential [View article]
Eastern sells primarily to large OEMs that require high-volume shipments of thousands of product variations. Over the last 50+ years Eastern has refined its manufacturing methods so that they can compete in the marketplace. Beyond the company's massive plant and machinery assets, they have extensive patents that protect their intellectual property as well as having proprietay methods of manufacturing that have been developed over the years.
Looking on the back of a Sesamee lock package, I see that this particular combination padlock with SearchAlert features has 5 patents listed, plus "other patents pending."
The company has invested $10.3 million in property, plant & equipment in just the last three years. And I note that they have accumulated depreciation of over $30 million.
Any competitor would have many hurdles to compete with Eastern's over 10,000 products serving high-end OEM customers.
I've followed the company for 15-20 years. The Company's headquarters building is nearby.
Buy Chesapeake And Get Rich: The Story Of Immense Energy Resources [View article]
I know your arguments for coal. The question I asked was, do you know the amount of natural gas needed to generate 1% of US electric power demand?
Buy Chesapeake And Get Rich: The Story Of Immense Energy Resources [View article]
Baltic Trading Limited: Hidden Gem In Stormy Seas [View article]
http://seekingalpha.co...
Baltic Trading Limited: Hidden Gem In Stormy Seas [View article]
Don't worry, the banks will not tolerate more ship loans. They first have to have their current loans start amortizing principal.
"The last man standing" theory applies here. Both Genco and Baltic Trading have a good chance to benefit from tightening charter rates due to lack of financing and scrapping of old vessels.
Baltic in particular has a fairly low risk level given its conservative financial structure.
Facebook: 'Hotel California' 2012 [View article]
And note here that Instagram is even higher than Microsoft app on Facebook. Instagram is up to 30 million MAU. Brilliant move by Mr. Zuckerberg. http://bit.ly/QebHfy
Mobile is cannibalizing PC usage so a lot of the PC usage figures show slow growth.
There was some report recently that showed that FB was "killing" Google on mobile ads.
You refer to mobile not big at FB yet. Are you kidding? Imagine the guts and commitment of Mr. Zuckerberg of changing to native coding.
The upcoming supply of stock will help to satisfy rising commitments by fund managers. The problem is a lot of those RSU holders now being freed up will not just dump their shares. They will feed it out over 2-5 years.
Baltic Trading Limited: Hidden Gem In Stormy Seas [View article]
The market is now paying the following for BALT
3.41*22,712,088 or $77,448,220
Now you have add the debt outstanding if you want to just own the ships free and clear.
So, you must pay off net debt of $101,250,000 less cash on hand of $3.2 million. Or you must pay off $98,050,000.
Therefore your total cost of the ships is:
$77,448,220+98,050,000 or $175,498,220
This $175,498,220 amount you pay is substantially below the fair market value of the ships of $225,000,000. Or, if you paid the stock price today of 3.41, you would buy the ships at a discount of $50 million.
Therefore that discount of $50 million is the potential of the stock which works out to $2.20 per share of upside.
But we must remember that the above calculation is in a very depressed market. If the Baltic index rises, the FMV will rise too, thereby increasing the upside more than $2.20 from today's $3.41 per share.
Another way of looking at it is, the price of Baltic Trading could increase $2.20 per share and you would still be buying ships at a fair market value. That 2.20 provides your margin of safety if you are a buyer of ships.
But the market knows that Genco controls 84% of the vote so any takeover bid for BALT would have to be close to fair value of about $5.61.
The stock seems to be an increidble value since the structure of BALT is so "clean"---they outsource management sevices etc. so a buyer could just waltz in and own the company. In most companies you have to handle all sorts of labor deals etc. In BALT's case, all you need is a signature from Genco.
Facebook: 'Hey 19' Are You 'The Wall' [View article]
The repetitive hackneyed comments about the freed-up stock are really getting tiresome.
FB is widely traded and I suspect the earnings release 2 days before the overhang unlock will probably give pause to the holders to sell. After all, they have had a long time to take protective steps, like buying puts or shorting the calls. These guys no doubt are pretty savvy.