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  • Kratos: At Just $5, This Drone And Defense Stock Is Giving Investors A Half-Off Sale [View article]
    A common misconception and certainly no guarantee of shares being undervalued...though it does provide free publicity and many folks who will regurgitate the common misconception.

    We only need to look to such others like HERO and WTSL over the past year where SA authors made a big point of insider purchases, folks regurgitated the common misconception, the companies continued to disappoint and today find themselves in serious trouble with investors losing badly.

    You may want to review author's September article on MDR for similar analysis of a value trap.
    Dec 20, 2014. 10:31 AM | 1 Like Like |Link to Comment
  • Kratos: At Just $5, This Drone And Defense Stock Is Giving Investors A Half-Off Sale [View article]
    Absolutely correct Basileus on all points. The company/shares are a classic value trap. Author made same arguments and similar points on MDR this past quarter and shares are off about 60% since.

    Company cash position is declining $10 million to $20 million per quarter with no reason to expect that to change. The analyst estimates are worthless and smart investors should ignore them.

    There is very little about this defense contractor to indicate shares are so undervalued at this time. Others who post losses in even better financial shape trade at lower valuations.

    The strength in the shares the past couple days is likely no more than a dead cat bounce.
    Dec 20, 2014. 10:18 AM | Likes Like |Link to Comment
  • Astea International Keeps Disappointing, But The Pot Of Gold Might Be Near [View article]
    You are correct that you continue to argue with me and anyone who presents a thought which is not completely pro-ATEA. Now, as well as in the past, your "thesis" has relied on your vision of what the company "will" do, and the company has never come even remotely close.

    I am simply providing the facts, verifiable facts, that the company has not performed, and provides no evidence today that leads me to believe that it's going to change so dramatically. As a result of the extremely low float, the shares do not trade on fundamentals, but the games a few people play. This is also verifiable.

    There is as likely a possibility the company "might" be filing for bankruptcy protection equally as much as "the pot of gold 'might' be near".
    Dec 18, 2014. 06:26 AM | 2 Likes Like |Link to Comment
  • Broadwind Energy: The Rally May Have To Wait [View article]
    The price of oil has minor impact on the incentive of developing wind. There is a major push for clean/sustainable sources of power and a growing movement away from fossil sources. Wind projects take time to develop from infrastructure, logistics, and financial perspectives - they are not something that you decide to move forward on or stop on a dime depending on the price of oil any given day. It's about a long-term forward looking view which will pay benefits forever. Those who are moving in this direction are going to continue moving regardless of what is happening with oil.
    Dec 17, 2014. 03:57 PM | Likes Like |Link to Comment
  • Broadwind Energy: The Rally May Have To Wait [View article]
    Looks like the rally may not have to wait.
    Dec 17, 2014. 03:52 PM | Likes Like |Link to Comment
  • Astea International Keeps Disappointing, But The Pot Of Gold Might Be Near [View article]
    Just like you guaranteed the company would post a profit this past quarter.
    Dec 17, 2014. 02:34 PM | Likes Like |Link to Comment
  • Oil Doomsayers Were Wrong In 2009: 4 Reasons Why They Are Wrong Now [View article]
    You don't get to buy MDR for free.
    Dec 17, 2014. 08:29 AM | 2 Likes Like |Link to Comment
  • Oil Doomsayers Were Wrong In 2009: 4 Reasons Why They Are Wrong Now [View article]
    Your call on MDR being a buyout candidate at $6 in your article barely two months ago is laughable at this time. The current price is not a result of tax selling but rather an acknowledgment that it's doing a terrible job and things are likely not going to get better. We will be seeing some bankruptcies in this space before this is over, and those carrying high debt loads like MDR and HERO are likely candidates.
     
    Folks like yourself have still not learned that the book value is absolutely meaningless. When a company is posting losses, book value goes down. That MDR trades below book value is simply an indication that investors see the company continuing to post losses for the foreseeable future. Now, more than ever, it is nothing more than a value trap.
    Dec 17, 2014. 08:27 AM | 4 Likes Like |Link to Comment
  • Astea International Keeps Disappointing, But The Pot Of Gold Might Be Near [View article]
    So the inevitable gets delayed another 90 days.

    The facts don't change, the company is a bankruptcy candidate in the next 12 months.

    Negative tangible book value
    Current ratio a horrendous 0.53

    These are obvious indicators of a company that has performed atrociously in the past and is in trouble financially today.

    By accounting definition, the company is insolvent today.

    A 90 day stay on the delisting is certainly not a reason for celebration, it just continues to leave the situation in limbo, and the last line of the press release as you've provided sums up the situation - I doubt they will be able to evidence compliance.

    Lastly, and most importantly for me - I see no insiders buying shares. Everyone knows Zack has no reason to buy shares. However, Tobin purchased shares at $2.70 in November 2012 and none since. He owns a paltry 21,000 shares. So, the president of this company owns less than $50,000 of stock. This is the number one indicator to me that there is nothing noteworthy coming. If there was this magnificent turnaround about to happen, Tobin would be buying shares. Same goes for Etskovitz - he last bought a piddly amount of shares back in 2003. No further investigation is necessary. Actions speak louder than words...and the actions being taken here by these senior officers, is no action. If they aren't buying with the shares trading below $1.50, why should any retail investor think he knows better? The President and CFO would not pull money out of their pockets to buy shares even as they've floundered well below $2 for quite some time. That's all anyone needs to know...the President is not willing to buy at the current share price...half of what he was willing to pay two years ago - because today the company is on its deathbed. Simple as that.

    It will be interesting to see how the company intends to show compliance by March 16. Historically, the company does not announce Q4 earnings until the last week of March. Therefore, something is going to have to happen before then.
    Dec 16, 2014. 10:29 PM | 1 Like Like |Link to Comment
  • We've Now Approached 'Stupid' Levels For Prospect Capital [View article]
    "This equates to a collective investment of nearly $6 million. I've heard detractors state "That's chump change to guys that rich," which is possibly one of the dumbest things I've ever heard. People don't collectively invest that amount of their own money in something that they believe to be a "Ponzi scheme" - another ridiculous moniker that I've heard people assign to the company."

    If it's possibly one of the dumbest things you've ever heard, then you are possibly not seeing the forest through the trees.

    1. How much is their annual pay in comparison to the amount invested? I'm guessing their annual pay/compensation is more than what was invested. Do you not believe it is in their best interest to purchase if it helps to maintain their high paychecks?

    2. If you need to be issuing new shares to have enough funds to pay the dividend, doesn't this meet the definition of a Ponzi scheme? Bringing in new investors to pay the existing investors? I've seen a number of companies do this pulling the wool over investor's eyes...using a portion of money raised for business purposes and the remainder to pay the dividend. Here's the thing though - without doing the capital raise they could not maintain the dividend. That looks to be the case here - they didn't do the capital raise and now the cookie begins to crumble that they could not sustain the dividend level. It's a red flag. Accept it for what it means, or ignore and take your chances.

    Shares trading below stated NAV doesn't get me excited...little different than a company trading below book value - it's nice to see as a data point, but there are more important factors. How much debt is being carried and what's the leverage ratio? What is the asset quality of what comprises that stated NAV? We are on the dawn of rising interest rates, how will this affect things over the next few years?

    I believe that there's more going on here than what the bulls are acknowledging and the market is pricing in the appropriate risks at this time.
    Dec 16, 2014. 06:23 AM | 4 Likes Like |Link to Comment
  • Astea International Keeps Disappointing, But The Pot Of Gold Might Be Near [View article]
    ATEA is a bankruptcy candidate in 2015.
    Dec 16, 2014. 05:55 AM | Likes Like |Link to Comment
  • Cramer's Mad Money - 13 Things To Watch In The Week Ahead (12/12/14) [View article]
    Seems that fibonacciqueen really has a passion for the word "might".
    Dec 14, 2014. 04:06 PM | 1 Like Like |Link to Comment
  • Why Wet Seal Is Still A Buy [View article]
    Insider buying is a good signal, when used in support of other information. By itself it is of little use, as was the case here. Sure, there was insider buying, but everything else was terrible and getting worse.
    Dec 11, 2014. 06:42 PM | 1 Like Like |Link to Comment
  • Aeropostale: You Don't Need To Win Very Often To Come Out Ahead [View article]
    "...go check WTSL and how stupid their share purchases at ridiculously higher prices were with the shares well below 50 cents today."

    Even more to the point - WTSL has just warned that they'll likely be filing for bankruptcy protection. I bet that at this time they wish they had all of that cash they used on share repurchases.
    Dec 11, 2014. 12:01 PM | 1 Like Like |Link to Comment
  • The Wet Seal Inc.: Analysts Have Recently Upgraded The Stock To Reflect Successful Execution Of Turnaround Plans [View article]
    Way to go buddy - another bankruptcy in the books for you! Let's see, when did you begin pumping - $3 maybe?

    http://seekingalpha.co...
    Dec 11, 2014. 10:01 AM | 1 Like Like |Link to Comment
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