Historic Up Move for Forterra Inc (NASDAQ:FRTA)

Forterra Inc (NASDAQ:FRTA)

Shares of Forterra Inc (NASDAQ:FRTA) are up over 35% and having one of their best days in the company’s history as it beat EBITDA expectations. FRTA stock is trading north of $6.00 after the company released their Q3 earnings report. This huge up move comes less than 60 days after the company established a 52-week low of $3.02 in early September.

Forterra Inc (NASDAQ:FRTA)

Forterra Q3 Results

Forterra Inc (NASDAQ:FRTA), based in Irving, TX, reported a net loss for the quarter of (-$11.5) million, or (-$0.18) per share. According to analysts surveyed by Zacks Investment Research, the consensus Q3 2017 EPS figure was $0.06. During the same period last year, Forterra reported net income of $8.4 million, or $0.19 per share. The loss was attributed to the sale, for $31.6 million. Of the company’s pressure pipe business. The release also noted the negative effects of the two hurricanes that impacted operations. As of September 30, 2017, Forterra had cash of $41.1 million and outstanding debt on its senior term loan of $1.2 billion.

Two bright spots helped launch the shares higher this morning. The first was the net sales figure that increased to $444.3 million, compared to $441.1 million in the prior year quarter. Another factor was the company’s adjusted EBITDA figure. It surprised the street by coming in at $60.9 million.

Forterra Inc (NASDAQ:FRTA) CEO Jeff Bradley commented, “Our results this quarter demonstrate our ability to successfully execute on multiple objectives on a sequential quarter basis, including higher selling prices, lower costs, and improved earnings. Additionally, in spite of the impact of two major hurricanes, Adjusted EBITDA was above the mid-point of our guidance range.  My expectation for continued improvement in our earnings is supported by ongoing initiatives, a solid backlog and favorable market conditions.”

FRTA Stock Performance

Forterra Inc (NASDAQ:FRTA) shareholders have had a bad year. Year-to-date the stock is down over 75%. However the stock is well of its 52-week low of $3.02 that was seen in early September. The recent price gain will erase any monthly or quarterly losses and fill the gap created in mid-August when FRTA stock cratered from $8 and gapped down to open close to the $6 handle.

Eight firms follow Forterra Inc (NASDAQ:FRTA). Five rate FRTA stock as a “Hold”. While three rate the shares as a “Strong Buy”.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $FRTA and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP)

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) Trims Losses

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP)

Shares of Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) gained 21.36% after the international shipping company reported third quarter financial results that beat Wall Street Expectations. Improvement in the Capesize market allowed the company to post a 119% increase in revenues.

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP)

Improving Fundamentals

The better than expected financial results appear to have strengthened investor confidence in the stock after being under pressure in recent years. The stock has gained more than 40% in the past month as investors react to improving fundamentals in the shipping industry. The rally has helped support the stock’s listing credentials, after being hit with a non-compliance notice in May, by the NASDAQ Capital Market.

The shipping industry, which has been on the decline in recent years, is slowly picking up. Baltic Capesize Index has averaged about 1,839 points year to date, a 112% increase from last year’s average levels.

Increase in shipping rates and orders has allowed the likes of Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) to generate significant revenues after years of declines. Annual growth in the seaborne transportation of Capesize commodities is estimated at 6% for this year and next year.

“During the third quarter of 2017, the Capesize market continued its improving course that commenced at the beginning of the year. Our fleet benefited significantly from the stronger Capesize rates,” said CEO Stamatis Tsantanis.

Q3 Financial Results

For the three months ended September 30, 2017, Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) generated net revenues of $18.9 million compared to $8.6 million reported in Q3 2016. Net revenues for the first nine months of the year increased 112% to $50.5 million.

Net income came in at $6.5 million compared to a net loss of (-$5.9) million reported last year. Net loss for the first nine, months of the year stood at (-$3.1) million compared to a net loss of (-$17.7) million reported last year.

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) completed a refinancing of one of its Capesize vessels in the quarter consequently generating an $11.4 million gain and equity accretion. The transaction resulted in a 38% increase in the Company’s total equity value.

During the quarter, the company also added a tranche of up to $16.5 million to the senior secured loan facility with Amsterdam Trade Bank entered in May. Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) also issued a convertible promissory note worth $13.75 million to repay a loan agreement with Jelco.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $SHIP and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

TOP SHIPS Inc. (NASDAQ:TOPS)

Is TOP SHIPS Inc. (NASDAQ:TOPS) Sell-Off Over? Or Restarting?

TOP SHIPS Inc. (NASDAQ:TOPS)

TOP SHIPS Inc. (NASDAQ:TOPS) was a big mover in Monday’s trading session even as the shipping company continued to face a wave of class action lawsuits and SEC Subpoenas. The stock was up by 133% after gaining nearly 150% on Friday.

TOP SHIPS Inc. (NASDAQ:TOPS)

The breathtaking rallies have helped strengthen the share price after the NASDAQ Capital Market hit the company with a non-compliance notice last month. The stock is currently trading above $1, needed for continued listing in the exchange. However, it needs to trade above the minimum requirement for a minimum of 10 days if it is to regain compliance.

Since the start of the month, TOP SHIPS Inc. (NASDAQ:TOPS) has gained more than 250% in market value after bouncing back from all-time lows. However, the stock still has a long way to go as it is still a shadow of itself, given that it was trading at, after taking share dilution into account, $36,540 as early as January.

TOPS Stock Dilution Impact

Investor sentiments on the stock took a hit after it emerged that the company’s CEO Evangelos J. Pistiolis might have engaged in a series of manipulative share issuance/sales transactions with Kalani Investments Limited. A number of law firms allege that the CEO caused the company to sell shares and securities convertible into common shares at significant market price.

Kalani Investments reportedly went on to resell the shares into the market – a move that law firms allege caused Top Ships share price to drastically decline. Top Ships went on to carry out a number of reverse stock splits in a bid to shore up the stock price. The same pattern of transactions occurred more than once according to Lundin Law P.C

“While Top Ships was engaging in these transactions, the Company failed to disclose the true purpose of the transactions and related stock issuances and reverses – to finance related-party transactions and acquisitions that primarily benefited Mr. Pistiolis and his related companies,” Lundin Law PC in a statement.

By August, TOP SHIPS Inc. (NASDAQ:TOPS) had reportedly issued tens of millions of shares through Kalani, vastly diluting existing shareholders. In its lawsuit, Lundin Law PC alleges that a good chunk of proceeds from the offering went on to enrich Mr. Pistiolis and his affiliates.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $TOPS and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Medical Transcription Billing Corp (NASDAQ:MTBC)

Medical Transcription Billing Corp (NASDAQ:MTBC)’s Net Loss

Medical Transcription Billing Corp (NASDAQ:MTBC)

Shares of Medical Transcription Billing Corp (NASDAQ:MTBC) fell 24.56% after the provider of cloud-based healthcare IT solutions reported Q3 financial results that showed a net loss for the first nine months of the year. However, the company reported a 50% revenue increase for the same period.

Medical Transcription Billing Corp (NASDAQ:MTBC)

Revenue Growth

According to the Chief Executive Officer, Mahmud Haq, revenue growth for the first nine months of the year set the company on course for record annual revenue. In additional to revenue growth, Medical Transcription Billing Corp (NASDAQ:MTBC)’s balance sheet received a boost in the quarter.

“Since our last earnings call, we fully repaid the balance of our $10 million credit facility with Opus Bank (“Opus”) two years prior to the original maturity date, paid Prudential the remaining $5 million plus interest owed for the MediGain acquisition, and raised capital in a way that didn’t dilute our common shareholders,” said Mr. Haq.

Medical Transcription Billing Corp (NASDAQ:MTBC) is still trading in an uptrend despite losing nearly a quarter of its total market value. For the full year, the stock is up by more than 200%. Monday’s sell-off could be a minor correction pending a major move on the upside.

For the Three months ended September 30, 2017, Medical Transcription Billing Corp generated revenues of $7.5 million, representing a 41% year-over-year increase. The company attributes the increase to the MediGain acquisition. Revenue for the first nine months came in at $23.5 million.

Net Loss

Net loss stood at (-$980,000) an improvement from a net loss of (-$1.7) million reported in the second quarter.

“The $714,000 improvement in our GAAP net loss from last quarter was due to a $780,000 reduction in amortization expense,” said Bill Korn, MTBC Chief Financial Officer. Net loss for the first nine months of the year increased to ($5.4) million from (-$4.8) million.

Medical Transcription Billing Corp (NASDAQ:MTBC) attributes the wider than expected net loss to non-cash amortization and depreciation expense of $3.6 million. The company also incurred restructuring charges in relation to the closing of offices in Poland and Bangalore, India and shifting of teams in Pakistan and Sri Lanka.

Medical Transcription Billing Corp (NASDAQ:MTBC) exited the third quarter with $2.8 million in cash and positive working capital, representing $5 million improvement.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $MTBC and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP)

High Hopes for Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) Earnings

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP)

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) shares are 8.5% higher in early trading on a volume over 20 times larger than the daily average. Speculation is that traders are bidding up the price of the stock in front of their Q3 earnings report, due before the market opens tomorrow, in hopes that it will be a repeat of their Q2 report that saw massive increases in net revenues compared to the same period in 2016. Net revenues for Q2 2017 were reported up 125% compared to Q2 2016 and up 38% from Q1 2017.

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP)

Dry-Bulk Shipping Rates

Also at play are higher bulk shipping rates that could lend support to such speculation. According to Seatrade Maritime News, “The Baltic Dry Index (BDI) achieved a three-year high at 1,588 last Tuesday [October 24, 2017], thanks to the rally seen among the industrial commodities.” However, interested parties should not that the article finishes with the following observation “With downtrend seen across the dry bulk rates, one wonders if the BDI can continue to push for further height again. However, the freight rates are still in the strong position currently with the support of the commodities prices rally. Perhaps, the market may see another upswing with the return of the traders from the Coaltrans conference.”

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) is an Glyfada, Greece based shipping company that owns and operates dry bulk shipping assets. Seanergy currently owns eleven dry bulk carriers, consisting of nine Capesizes and two Supramaxes, with a combined cargo-carrying capacity of approximately 1,682,582 dwt and an average fleet age of about 8.4 years. The company operates internationally and is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong.

SHIP Stock Performance

From 2012 until the end of 2014, the number of outstanding SHIP shares was stable. Then in 2015 the number increased to 10.77 million, then increased in 2016 to 20.55 million. Such actions heavily dilute shareholder equity and are a likely factor with the resistance of long-term investors to embrace the stock.

Investors have also not been keen on the erratic annual sales figures. In 2012, Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) posted a sales figure of $55.6 billion. In the years that followed the annual sale figures were, in billions of $USD, $23.1, $2.0, $11.2, and $34.7.

Analysts have a consensus, one-year price target on SHIP of $2.00.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $SHIP and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Market Awaits Medical Transcription Billing Corp (NASDAQ:MTBC) Earnings

Medical Transcription Billing Corp (NASDAQ:MTBC)

Medical Transcription Billing Corp (NASDAQ:MTBC) is scheduled to release their Q3 earnings report today before the market opens. In August, the company placed its full year 2017 guidance at $31 to $32 million. That level of revenue represents a 27% to 31% growth over 2016 revenue. The company expects 2017 adjusted EBITDA to be $2.0 to $2.5 million.

Medical Transcription Billing Corp (NASDAQ:MTBC)

Medical Transcription Billing Corp (NASDAQ:MTBC) is a healthcare information technology company that provides a fully integrated suite of proprietary web-based solutions, together with related business services, to healthcare providers practicing in ambulatory care settings. Their platform is designed to help customers increase revenues, streamline workflows, and make better business and clinical decisions.

MTBC Stock

MTBC shares have gained over 450% year-to-date and almost 50% in just the last month. That has pushed MTBC stock from its 52-week low of $0.29, to its 52-week high, achieved in October, of $5.44.

During that time, the company repaid its debt. To pay off that debt, Medical Transcription Billing Corp (NASDAQ:MTBC) issued $7.9 million worth of Series A Preferred Stock. The move worked, according to observers, as revenues have exceeded cash operating expenses since May 2017.

Over the years, MTBC has not been able to transform annual increases in sales to profits. In 2012, the per share profit was just $0.01. Annual per share losses followed of (-$0.02), (-$0.64), (-$0.46), and, for 2016, (-$0.95).

However, sales did increase year on year. In 2012, sales were reported at $10 million. That annual figure was followed by annual figures of $10.5 million, $18.3 million, 23.1 million, and in 2016, $24.5 million.

It should be noted that the company has quite a number of short-sellers betting against it. As of November 3, 2017, over 15% of the stock’s float was being held in a short position.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $MTBC and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Rand Logistics, Inc. (NASDAQ:RLOG)

Rand Logistics, Inc. (NASDAQ:RLOG) Starting a Rebound?

Rand Logistics, Inc. (NASDAQ:RLOG)

Rand Logistics, Inc. (NASDAQ:RLOG), headquartered in Jersey City, New Jersey, offers bulk freight shipping services throughout the U.S. Great Lakes region. Through its subsidiaries, the Rand Logistics operates ten self-unloading bulk carriers, including eight River Class vessels and one River Class integrated tug/barge unit, and three conventional bulk carriers.

Rand Logistics, Inc. (NASDAQ:RLOG)

Rand Logistics Competitive Advantage

Rand Logistics, Inc. (NASDAQ:RLOG) has a competitive advantage that is rooted in U.S. and Canadian legislation. Due to the provisions of the Jones Act and the Canadian Marine Act, Rand Logistics is the only ship carrier able to offer significant domestic port-to-port services in both Canada and the U.S. on the Great Lakes. The Jones Act mandates that only ships that are built, crewed, and owned by U.S. citizens can operate between U.S. ports. The Canada Marine Act requires Canadian commissioned ships to operate between Canadian ports.

RLOG stock has not traded above $1 since mid-February, 2017. Technically, this puts the company in violation of NASDAQ Rule 5550(a)(2) which states that “(a) Continued Listing Requirements for Primary Equity Securities: (2) Minimum bid price of at least $1 per share.”

Year-to-date, RLOG shares have lost over 50% of their value. But in the last quarter, shares have rebounded and gained almost 45%. The stock’s 52-week low of $0.19 was established in July.

While RLOG stock has rebounded recently, some observers still believe there are issues with the finances that will be very challenging for the company to overcome. According to published accounts, Rand Logistics, Inc. (NASDAQ:RLOG) has a current ratio of 0.10. The current ratio measures whether or not a firm has enough resources to cover its debts over the next year. When a current ratio is below 1, then the company may have problems meeting its short-term obligations (current liabilities).

However, reports show that at least one person with a large (10+%) stake in the company has been purchasing shares since early August. The consensus, one-year price target for RLOG is $2.00.

Sales took a big hit for FY2017 when the company reported a figure of $115.5 million – well below the 2016 figure of $148.4 million. FY2017 was also the largest per share loss the company has posted since 2012. For FY2017 they reported a loss of (-$1.08) – more than treble the loss of 2016.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $RLOG and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Insignia Systems, Inc. (NASDAQ:ISIG) Explodes on Earnings Surprise

Insignia Systems, Inc. (NASDAQ:ISIG)

Insignia Systems, Inc. (NASDAQ:ISIG) stock was up over 80% in morning trading after the company released their Q3 earnings yesterday after the market closed. The global consumer marketing firm reported increases in Net Sales, Gross Profit, and Net Income.

ISIG stock closed yesterday at $1.36, then gapped up to open at $1.58 before hitting the inter-day high of $2.19. While ISIG shares are down year-to-date, and for the past year, they are up over 35% during the past quarter.

Insignia Systems, Inc. (NASDAQ:ISIG)

Q3 Earnings

Net sales increased 19.4% to $7,723,000 in Q3 2017, from $6,469,000 in Q3 2016, primarily due to a 30.4% increase in the number of signs placed. Gross profit in Q3 2017 increased to $2,743,000, or 35.5% of net sales, from $2,000,000, or 30.9% of net sales, in Q3 2016. The increased gross profit was primarily due to an increase in sales and a decrease in cost of services due to the discontinued sale of The Like Machine. Gross profit is highly dependent on sales levels due to the relatively fixed nature of a portion of Insignia’s payments to retailers. Net income for Q3 2017 was $451,000, or $0.04 per basic and diluted share, compared to a net loss of -$167,000, or (-$0.01) per basic and diluted share, for the same period last year.

Insignia Systems, Inc. (NASDAQ:ISIG) President and CEO Kristine Glancy commented, “We are pleased with our quarterly results, having delivered both top and bottom line growth. The quarterly results reflect the continued progress against our strategic initiatives with the addition of new CPG customers, strengthening the relationships with existing clients, and gaining traction on business development projects. These strategic initiatives are expected to positively impact the remainder of 2017 and beyond.”

ISIG Stock

The consensus, one-year price target for ISIG stock is $3.00. Insignia Systems, Inc. (NASDAQ:ISIG) reported a per share loss for 2016 of (-$0.11) on sales of $24.9 million. However, it appears that management has set the course for a more profitable 2017.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ISIG and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Marathon Patent Group Inc. (NASDAQ:MARA)

Marathon Patent Group Inc. (NASDAQ:MARA) Drops After Acquiring Global Bit Ventures

Marathon Patent Group Inc. (NASDAQ:MARA)

Marathon Patent Group Inc. (NASDAQ:MARA) fell 19% after announcing a definitive agreement to acquire 100% ownership of Global Bit Ventures. The acquisition will expand the company’s operations into the cryptocurrency business.

Marathon Patent Group Inc. (NASDAQ:MARA)

Global Bit Venture Acquisition

Global Bit Ventures has developed a robust infrastructure that Marathon Patent Group Inc. (NASDAQ:MARA) plans to take advantage of, in its pursuit of growth opportunities around digital currencies. According to Chief Executive Officer, Doug Croxall, the acquisition underscores the company’s commitment to enhancing shareholders value by pursuing alternative business directions.

Prior to the acquisition of Global Bit Ventures, Marathon Patent Group Inc. (NASDAQ:MARA) was focused on the business of acquiring patents and patent rights from owners and other ventures. The company generates a good chunk of its earnings from monetization of the patent portfolio through license discussions. However, with the acquisition of GBV, its revenue stream should receive a boost.

“We believe the acquisition of Global Bit Ventures will take advantage of an ongoing revolution in digital transactions conducted on blockchain as we see increasing adoption and proliferation of blockchain protocols in our everyday lives,” said Mr. Croxall.

GBV boasts of a technology that powers and secures blockchain by operating custom hardware and software. GBV currently owns 250GH/s of GPU mining servers and plans to add 14PH/s of ASIC servers to further strengthen its prospects in the merging industry. The company’s director, Charles Allen, expects the merger to position the company for rapid revenue growth in the years to come.

Marathon Patent Group Inc. (NASDAQ:MARA) has been trading in a downtrend for the better part of the year. Investor’s sentiments has hit all-time lows at the back of a strong sell-off wave. The stock is down by more than 70% for the year as it continues to trade near its 52-week low of $1.49 a share.

Reverse Stock Split

Separately, Marathon Patent Group Inc. (NASDAQ:MARA) has initiated a four-for-one reverse-split for its outstanding common stock. The reverse split will reduce the company’s common stock from about 32.4 million shares to 8.6 million shares. The company is hoping the split will shore up the stock price thereby bring the company into compliance with the NASDAQ Capital Market minimum average closing price of $1 a share.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $MARA and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

NII Holdings, Inc. (NASDAQ:NIHD) And Lenders Reach Agreement

NII Holdings, Inc. (NASDAQ:NIHD)

Shares of NII Holdings, Inc. (NASDAQ:NIHD) gained 4.55% after the mobile communication services provider announced the restructuring of a loan agreement with China Development Bank, Banco do Brazil, and Caixa Economica Federal. The changes include the deferral of principal payments for the first 48 months from the date of effectiveness.

NII Holdings, Inc. (NASDAQ:NIHD)

Loan Amendments

Wednesday’s rally helped push the stock slightly above its 52-week low of $0.36 a share. However, the stock continues to trade in a strong downtrend after underperforming the overall industry for the better part of the year. The stock is down by more than 80% for the year.

Amidst the underperformance, Chief Financial Officer, Dan Freiman remains upbeat about NII Holdings, Inc. (NASDAQ:NIHD) prospects,

“The signing of the amendments marks a significant milestone in our efforts to improve our financial outlook and liquidity and will enable us to continue to invest in and grow our business in Brazil. We are actively working to obtain the final approvals necessary for the amendments to become effective,” said Mr. Freiman.

The proposed amendments include a compliance holiday for certain financial covenants including the net debt financial covenant until June 30, 2020. The amendments also include a loan maturity date of 98 months. NII Holdings, Inc. (NASDAQ:NIHD), through Nextel Brazil, is to grant an additional security interest to each of its lenders in the form of preferential rights as part of the agreement. The amendments are still subject to approval by Sinosure on or before December 31, 2017.

 

Q2 Financial Results

NII Holdings, Inc. (NASDAQ:NIHD) reported a net loss of (-$84.8) million or (-$0.85) cents a share for the second quarter. Revenue in the quarter totaled $225 million. Capital expenditure in the quarter totaled $9 million. The company exited the quarter with a 29,000 3G net subscriber losses and 104,000 subscriber losses.

According to Chief Executive Officer, Roberto Rittes, the quarter highlighted improved operating cash flow efficiency due to increased focus on improving liquidity.

“In addition, during the quarter, other operators introduced more aggressive rate plans that affected our subscriber growth and churn. In response to this development, in August, we introduced new rate plans that we believe will compete well against the new offers in the market,” said Mr. Rittes.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NIHD and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.