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  • ALJ Regional Holdings: Building A Solid Holding Company, One Acquisition At A Time [View article]
    Nat, thank you for posting the links to the Covered California contract award.
    Nov 22, 2014. 03:43 PM | 1 Like Like |Link to Comment
  • ALJ Regional Holdings: Building A Solid Holding Company, One Acquisition At A Time [View article]
    ALJ management is opportunistic. The steel mill was acquired out of bankruptcy. In the case of Faneuil, we understand the business was generating around $110 million revenue and $10 million EBITDA when the deal was done. If annualizing fiscal Q III works the company should generate over $142 million revenue and $22 million EBITDA. Note that fiscal QIV revenue was in line with to slightly higher than Q III so that gives us comfort. With respect to the consideration paid, 3 million ALJJ shares were issued to the seller as part of the transaction. Those shares were valued around $.30 or $1 million at the time. The shares are now trading at $3.80 or over $11 million. Carpets was coming out of the Las Vegas real estate crash. We understand the company was a $100 million business before the real estate crash around 2008 and now its revenue run rate is $35 million. ALJ is investing in Carpets by upgrading stores, expanding product offerings (cabinets) and providing working capital. If the Las Vegas real estate recovery stays on track the business will do well. Management has a keen eye for value and a knack for turning around and growing businesses.
    Nov 21, 2014. 06:00 PM | 1 Like Like |Link to Comment
  • ALJ Regional Holdings: Building A Solid Holding Company, One Acquisition At A Time [View article]
    When the company reports fiscal Q I (ending Dec. 31) in mid February will have three quarters with complete operating results for Faneuil and Carpets. That will give a clearer view of how everything is coming together. Acquisitions will happen when they happen. When that might be is totally unpredictable but management has a track record of responding when opportunity knocks. If ALJ has a compelling opportunity they will figure out a way to get it done.
    Nov 21, 2014. 03:33 PM | 2 Likes Like |Link to Comment
  • ALJ Regional Holdings: Building A Solid Holding Company, One Acquisition At A Time [View article]
    Maybe4less2, the company has not disclosed the size of the contract that will eventually go to Xerox if the protest fails which is likely. Faneuil's overall gross margin is around 25% and segment EBITDA 15+% so the bottom line impact should not be great relative to total operating results. We understand all verticals are growing so that should pick up a good part of the slack. Also, once the contract is resolved Faneuil's involvement will be wound down so the revenues will tail off over a period of at least three months. Another factor to consider is that the company both competes with and works with Xerox and other competitors so anything can happen. We know management will be making disclosures in its annual report to help investors get a better handle on Faneuil and Carpets.
    Nov 21, 2014. 02:48 PM | 1 Like Like |Link to Comment
  • ALJ Regional Holdings: Building A Solid Holding Company, One Acquisition At A Time [View article]
    Chris, thank you for the link. Much has changed since your article in January 2013. ALJ did indeed turn steel into gold. That gold bought back 50% of the shares outstanding and acquired two well established, profitable and promising businesses at bargain prices. Recent bank financing coupled with strong cash flows from operations puts ALJ in strong position to do other transactions in the future. Alternatively, cash generated from operations could be used to pay down debt and do share buybacks. Whatever is most beneficial to shareholders.
    Nov 21, 2014. 02:08 PM | 3 Likes Like |Link to Comment
  • ALJ Regional Holdings: Building A Solid Holding Company, One Acquisition At A Time [View article]
    Celestial Hedge, we think ALJ's story is at the end of the beginning. There will be many more chapters written in the future. Management is opportunistic and industry agnostic. There will no doubt be other businesses acquired and possibly sold in the future. The two businesses ALJ has are well established, profitable and generating healthy cash flows. Management has demonstrated that growing shareholder value is the priority. Accordingly, the cash generated from operations will be used to pay down debt, do share buybacks or other acquisitions depending on circumstances and what is most beneficial to shareholders.
    Nov 21, 2014. 01:51 PM | Likes Like |Link to Comment
  • ALJ Regional Holdings: Building A Solid Holding Company, One Acquisition At A Time [View article]
    arackwitz, Thank you for your question. The NOL is $180 million. The eventual tax benefit should be 30% to 36% or $54 million to $65 million.
    Nov 21, 2014. 01:02 PM | Likes Like |Link to Comment
  • THT Heat Transfer Tech Inc. News Arbitrage From China Could Mean Significant Buying Opportunity [View instapost]
    Josh, we wanted to get this out as an 'alert' as quickly as possible. As a fellow contributor articles, you know the process of approval, so we did not want to take the chance of this going out late after the information arbitrage lost its luster. We may choose to issue an update at a later date, but can not be certain of that. If we do, it will most likely be in the form of an article. ty. GT
    Nov 12, 2014. 09:18 AM | Likes Like |Link to Comment
  • Ebola-stoked traders run up Ocean Bio [View news story]
    Hey, Really? How is product not potentially related to ebola? The EPA has deemed the disinfectant product to be effective against ebola. Furthermore, you should perform some DD as we had. This story is much more than ebola. We think the stock is about to enter a new phase of growth beginning in Q1 2015.
    Oct 8, 2014. 04:21 PM | Likes Like |Link to Comment
  • Global Telecom: Near-Term Catalysts Should Close Relative Valuation Gap [View article]
    Closed out our long position and removing from the GeoBargain list. Shares have increased slightly over 200% since we announced our long position and coded GTT as a GeoBargain on 7/31/2013. The stock has easily surpassed our initial price targets and is approaching our high end aggressive price target of $13.50
    Sep 24, 2014. 03:12 PM | 1 Like Like |Link to Comment
  • Stellar Biotechnologies: We've Seen The Pump, Now Here Comes The Dump [View article]
    Patrick. Not sure who you are addressing here. We are not affiliated with those authors who were bullish on $SBOTF. This is a community of authors with their own unique analyses and opinions. But, in your defense, it seems you are new to SA, so you get a free pass.
    Sep 24, 2014. 09:22 AM | 2 Likes Like |Link to Comment
  • Natural Health Trends Has All Of Its Eggs In One Highly Unstable Basket [View article]
    MDaceUT . You said " I certainly don't completely understand there business model completely."

    Exactly our point. We think many investors in NHTC don't understand the business model. But we believe the Chinese article we referenced regarding the NHTC type model, published by a source that understands MLM models in China should give investors pause. And you are wrong, we have not bought NHTC back.
    Sep 22, 2014. 12:44 AM | 1 Like Like |Link to Comment
  • Natural Health Trends Has All Of Its Eggs In One Highly Unstable Basket [View article]
    Vince,

    We do take speculative positions where we think the risk/reward is present.

    We are glad that you read the filings and listen to conference calls to help you make your decisions. Not everybody does. Just because information is older than a minute doesn't mean it is not still relevant.

    Nat,

    That said, we are aware of the risk on the short side too, but stand by our views.

    GT
    Sep 18, 2014. 09:21 AM | Likes Like |Link to Comment
  • 22nd Century Group: A Lot Of Smoke, Not Enough Fire [View article]
    Mr. Shears, please see our rebuttal posted at 9:15am today, nearly an hour before your comment. k2, thanks for pointing this out to Mr. Shears. Word of advice Harry as it seems you are new to SA - you can add stocks of interest to your SA portfolio to keep abreast of new material. I hope that helps.

    Again - http://seekingalpha.co...
    Aug 28, 2014. 11:35 AM | 1 Like Like |Link to Comment
  • 22nd Century Group: A Lot Of Smoke, Not Enough Fire [View article]
    http://seekingalpha.co...
    Aug 28, 2014. 10:02 AM | 1 Like Like |Link to Comment
COMMENTS STATS
402 Comments
190 Likes