Is It A Red Start For Sears Holdings Corp (NASDAQ:SHLD)?

Sears Holdings Corp (NASDAQ:SHLD)

Sears Holdings Corp (NASDAQ:SHLD) closed almost 12% lower after the company’s CFO Jason Hollar attempted to alleviate investor concerns by soft-pedaling the language in its 10-K filing on substantial “going-concern” doubt. Hollar stated that the use of the new language was intended to follow regulatory standards.

Deloitte made no note of the going concern matter in its yearly report audit opinion, but the CFO provided the somewhat circular statement that its independent auditors offered the firm with an unqualified audit opinion, which the CFO then stated indicates the company remains a going concern.

Debtwire legal expert Joshua Friedman postulates that the new language could be an indication that CEO Eddie Lampert, who has put cash into Sears Holdings from his ESL Investments hedge fund and has some of the firm’s unsecured debt, could be prepared to turn off the monetary spigot.

The update

Another year has passed by and Sears Holdings Corp (NASDAQ:SHLD) tries to captivate investors.

The company obtained proceeds of $105 million from the asset sale of three properties this month. The company obtained gross proceeds of $72.5 million earlier in January from a sale-leaseback deal for 5 Sears Full-line stores and 2 Sears Auto Centers and they obtained additional gross proceeds of $105 million in February from the sale of 3 Sears full-line stores, two leased and one owned, which they will continue to manage as Sears sites for a period of up to 1 year.

In the press release it was noted that Sears Holdings Corp (NASDAQ:SHLD) recorded $105 million of proceeds in February 2017 by selling 3 assets. The question arises, are these two transactions the same? If yes, then one of the months is wrong? It could be that there are two different transactions, the terms coincidentally happen to be the same. There remains some confusion which as of now needs to be sorted out before taking out any call on Sears.

In the last trading session, the stock price of Sears Holdings Corp (NASDAQ:SHLD) declined more than 12% to close the session at $7.98. The decline came at a share volume 4.14 million compared to average share volume of 1.98 million.

3/22/2017
Ticker Symbol SHLD
Last Price a/o 3:21 PM EST $7.98
Average Volume 1.93M
Market Cap (mlns)  $854.18M
Shares Outstanding (mlns) 107.04M
Share Float (mlns) 70.84M
Inside Ownership 30.00%
Short Float 25.39%
Short Interest Ratio 9.33
Quarterly Return -20.44%
YTD Return -14.10%
Year Return -46.12%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

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

Sliding Vince Holding Corp (NYSE:VNCE) Has a Dead Cat Bounce?

Vince Holding Corp (NYSE:VNCE)

Vince Holding Corp. (NYSE:VNCE) shares were trading over $7 for most of 2014. Today they closed below $2. Vince designs, manufactures, and markets fashion through wholesale and direct-to-consumer channels. They operate in both the men’s and women’s ranges. Vince has 34 retail stores and 14 company operated outlet stores. Additionally, sales are made through vince.com and other e-commerce websites. Globally, it sells through over 2,500 distribution points in 38 countries.

On February 13, 2017 Vince Holding Corp. (NYSE:VNCE) ended a consulting relationship with the company’s founders Rea Laccone and Christopher LaPolice. That ending was reportedly based on the results of an attempt to reset the brand and ignite the growth that Vince Holding Corp. had once enjoyed.

After falling below $2 in February, shares of Vince Holding Corp. (NYSE:VNCE) have experienced low volatility – the largest daily trading range had been less than $0.30. However, on Tuesday, with no news to act as a catalyst, VNCE shares exploded. On Monday VNCE shares ended the day at $1.40 but on Tuesday shares hit the $2 mark before retreating and closing at $1.55. Today VNCE gapped up to open at $1.55 and reached a high of $2.10. Volumes were over twice their listed average daily volume.

In August and December, two firms upgraded their rating for Vince Holding Corp. (NYSE:VNCE). Both Stifel and Piper Jaffray had “Hold” ratings on VNCE but each raised their rating on the shares to “Buy”. Neither ratings increase served as much of an incentive to the market and VNCE shares continued their slide. Vince Holding Corp. (NYSE:VNCE) reported increasing sales from 2012 when it posted a figure of $175.3 million. That figure increased YoY and peaked in 2015 when the firm posted a sales figure of $340.4 million. However in 2016 the sales figure dropped to $302.5 million. EPS for shareholders of VNCE followed a similar path. A, EPS loss of -$1.60 in 2012 decreased YoY and the company posted and EPS profit of $0.97 in 2015. But again, in 2016 that gain was narrowed to an EPS profit of $0.14 for VNCE shareholders.

3/22/2017
Ticker Symbol VNCE
Last Price a/o 4:37 PM EST  $                      1.95
Average Volume                    620,250
Market Cap (mlns)  $                    76.65
Sales (mlns) $286.10
Shares Outstanding (mlns) 49.45
Share Float (mlns) 48.77
Shortable Yes
Optionable Yes
Inside Ownership 56.87%
Short Float 6.94%
Short Interest Ratio 5.46
Quarterly Return -65.56%
YTD Return -61.73%
Year Return -77.21%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.

Why AK Steel Holding Corporation (NYSE:AKS) Declined Over 10%?

AK Steel Holding Corporation (NYSE:AKS)

In yesterday’s trading session, the stock price of AK Steel Holding Corporation (NYSE:AKS) declined more than 10% to close the day at $7.41. The decline came at a share volume of 8,500 compared to average share volume of 17.87 million.

The buzz

There doesn’t appear to be any company specific news announced on the back of which this decline was recorded. President Trump is taking back his initial promise to use pipe that’s made in the U.S. to build the Dakota and Keystone Access pipelines. It reported that these won’t be the only large infrastructure assignments moving forward under the Trump management that won’t be utilizing U.S. steel products to establish their steel bones.

Earlier, the New York Daily News stated that the $4 billion assignment to upgrade LaGuardia airport will put steel made in Canada to establish part of its Terminal B, and also Chinese steel to construct its roadway bridges.

The Port Authority of New Jersey and New York insists that its use of Chinese and Canadian steel is in compliance with its obligations to utilize 50% domestic steel. Nevertheless, a realization may be beginning on shareholders who leapt to purchase steel shares following Trump’s election: Just because the U.S. President has been discussing up U.S. steel doesn’t indicate steel consumers will bite the bullet and purchase U.S. steel when it is possible to buy it cheaper from somebody else.

The U.S. is a market economy, and AK Steel Holding Corporation (NYSE:AKS) had to compete on price if it intends to win business. For investors in a firm that lost $7.7 million in spite of selling $5.9 billion in steel preceding year, the prospect of lowering prices even more to compete may not seem extremely appealing.

More recently, the company reported that its subsidiary unit, AK Steel Corporation has successfully priced public offering of $400 million aggregate principal sum of 7% senior notes outstanding 2027.

AK Steel Holding Corporation (NYSE:AKS) will compensate interest on the Notes twice a year, in March and September of each year. The maturity date stands at March 15, 2027 while interest on the lately issued Notes will grow from March 23, 2017. The “Notes” will be fully and categorically guaranteed by direct parent of company, and by AK Tube LLC, Mountain State Carbon, LLC and AK Steel Properties, Inc. three subsidiaries of AK Steel. These notes will be marked as unsecured senior obligations of company and the Guarantors.

3/21/2017
Ticker Symbol AKS
Last Price a/o 3:21 PM EST  $7.41
Average Volume 19.81M
Market Cap (mlns)  $2.33B
Shares Outstanding (mlns) 314.16M
Share Float (mlns) 309.63M
Inside Ownership 0.70%
Short Float 15.71%
Short Interest Ratio 2.46
Quarterly Return -28.61%
YTD Return -27.42%
Year Return 73.13%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

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

Versar Inc. (NYSEMKT:VSR) is Well Positioned For Budget Promises

Versar Inc. (NYSEMKT:VSR)

Versar Inc. (NYSEMKT:VSR) could be the single best positioned company in the world to benefit from the expected infrastructure spending bills that President Trump’s administration has been pushing. Based just outside of Washington D.C., in Springfield, VA, Versar is a global project management company that provides support to local, state, and federal infrastructure projects. Versar Inc. (NYSEMKT:VSR), formed in 1969, has 22 offices that span the globe.

On March 14, 2017 it was announced that the Environmental Protection Agency (EPS) has awarded Versar Inc. (NYSEMKT:VSR) a $1.4 million contract to provide technical support to a program that studies human exposure to pesticides. The contract is for a single year but provides for five option years.

Announced today was the awarding of a U.S. Air Force contract, potentially worth $950 million, to a joint venture formed between Johnson Controls (JCI) and Versar Inc. (NYSEMKT:VSR). The contract includes the full range of construction, engineering and design-build for new facilities, and repair, renovation, and/or restoration for existing facilities and infrastructure.

Versar Inc. (NYSEMKT:VSR) shares are up 13% for the month. VSR shares have a 52-week low of $0.90 and a 52-week high of $3.25. Reports have the consensus analyst’s price target set at $5.50 – at the time of this writing VSAR was trading around $1.50. There was a VSR EPS loss of -$0.05 in 2014 but that rebounded to a positive EPS figure of $0.14 in 2015. Similarly, sales improved for the past three years. In 2013 Versar Inc. (NYSEMKT:VSR) posted a figure of $$102.6 million and that figure trended up and was posted at $159.90 million in 2015. Versar Inc. (NYSEMKT:VSR) dilution has not been a problem for shareholders. In 2011 there were 9.26 million shares of VSR outstanding and that number increased to just 9.77 million for 2015.

3/21/2017
Ticker Symbol VSR
Last Price a/o 12:56 PM EST  $                      1.53
Average Volume                      58,230
Market Cap (mlns)  $                    11.20
Sales (mlns) $185.10
Shares Outstanding (mlns) 9.91
Share Float (mlns) 8.8
Shortable Yes
Optionable No
Inside Ownership 11.16%
Short Float 0.53%
Short Interest Ratio 0.8
Quarterly Return -21.53%
YTD Return -17.52%
Year Return -48.64%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

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.

Super Conductor Technologies, Inc. (NASDAQ:SCON) Receiving a Lot of Attention from Traders

Super Conductor Technologies, Inc. (NASDAQ:SCON)

Nano-cap Superconductor Technologies, Inc. (NASDAQ:SCON) is receiving a lot of attention from traders today. The Austin, TX-based technology company was trading at $1.42 (+10.9%) on large volumes. The average daily trading volume for SCON is listed at 1.15 million shares but less than 20 minutes into trading SCON shares traded hands over 680,000 times.

With less than a $10 million market cap, Superconductor Technologies, Inc. (NASDAQ:SCON) does not trade in the options markets. However, that appears to not be deterring traders as enthusiasm for the stock today as trader chat rooms are abuzz with activity around SCON shares. SCON shares ended yesterday at $1.28, gapped up to open at $1.35 and reached $1.47 before retreating.

The 20-day and 50-day daily average price was breached when SCON opened on Monday. Both averages were about $1.17. The 200-day daily average is running around $2.08. The breech of the 20 and 50 day moving averages may well have been a trigger for traders to begin the large amount of activity today. However, SCON shares seem to be hitting some large selling activity above $1.40.

Superconductor Technologies, Inc. (NASDAQ:SCON) holds the patent for its Conductus super-conducting wire. It boasts 100 times the capacity of conventional copper and aluminum wire. This provides exceptional power efficiency for motors, generators, and medical equipment. Superconductor Technologies, Inc. (NASDAQ:SCON) holds over 100 patents and was formed in 1987.

HC Wainwright is the sole analyst covering Superconductor Technologies, Inc. (NASDAQ:SCON). It offers a rating of “Hold” for SCON shares. Long-term investors in SCON shares have had little to cheer. Although their EPS is improving YoY, it is still reporting negative EPS. In 2015 the figure was-$6.55. Sales are also trending in the wrong direction. In 2011 Superconductor Technologies, Inc. (NASDAQ:SCON) reported sales of $3.5 million. That number has trended lower each year and was just $200,000 in 2015. SCON share dilution has also been a shareholder nemesis. In 2011 there were just 110,000 SCON shares outstanding. That number steadily grew to $1.31 million in 2015.

3/21/2017
Ticker Symbol SCON
Last Price a/o 9:56 AM EST  $                      1.36
Average Volume                1,150,000
Market Cap (mlns)  $                      6.45
Sales (mlns) $0.10
Shares Outstanding (mlns) 5.04
Share Float (mlns) 4.37
Shortable Yes
Optionable No
Inside Ownership 0.30%
Short Float 14.74%
Short Interest Ratio 0.56
Quarterly Return -7.91%
YTD Return 4.07%
Year Return -64.44%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.

Hornbeck Offshore Services, Inc. (NYSE:HOS) Hits Weekly Highs

Hornbeck Offshore Services, Inc. (NYSE:HOS)

Hornbeck Offshore Services, Inc. (NYSE:HOS) received good news from the debt markets and a key analyst last week. Today the stock’s low was just $0.06 off its 52-week lows but HOS shares did end up on their highs for the preceding week of trading. On Friday HOS closed at $3.20 and opened today at $3.16 and closed up almost 16% at $$3.71. Additionally, Todd Hornbeck, President and CEO, purchased 61,250 shares last Thursday.

Hornbeck Offshore Services, Inc. (NYSE:HOS) provides marine transportation, subsea installation, and accommodation support to oilfield exploration and production companies as well as offshore construction, and the U.S. military. It operates primarily in the Gulf of Mexico but also has operational capabilities in Latin America as well as select other international locales. Hornbeck Offshore Services, Inc. (NYSE:HOS) is headquartered in Covington, LA.

Last week, Hornbeck Offshore Services, Inc. (NYSE:HOS) got some good news from the debt markets. Its 2020 5.875% bond rose in price 1.5% against its face value. Additionally, Zack’s investment analysts raised their rating on HOS to a “Hold” rating from a “Sell”. That brings the total number of “Hold” ratings on HOS to six while one analyst rates HOS shares as a “Strong Buy”.

There is a strong short position on Hornbeck Offshore Services, Inc. (NYSE:HOS) equal to over 35% of the float. Given HOS share’s volumes, that equates to a short ratio of 9.29. The 52-week low for Hos is $3.00 and the 52-week high is $12.57. Analyst’s consensus price target for HOS is $8.00.

Sales and EPS has been sliding since 2014. EPS in 2014 was $2.43 but that declined to a figure of a loss of -$1.76 in 2016. The 2014 sales figure for Hornbeck Offshore Services, Inc. (NYSE:HOS) was $634.8 million but that number shrank to $224.3 million in 2016. On a brighter note – the number of outstanding shares of HOS has remained stable and dilution has not been a concern for investors.

3/20/2017
Ticker Symbol HOS
Last Price a/o 4:00 PM EST  $                      3.71
Average Volume                1,240,000
Market Cap (mlns)  $                  135.30
Sales (mlns) $224.30
Shares Outstanding (mlns) 36.47
Share Float (mlns) 32.11
Shortable Yes
Optionable Yes
Inside Ownership 11.00%
Short Float 35.76%
Short Interest Ratio 9.29
Quarterly Return -51.82%
YTD Return -48.61%
Year Return -64.02%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

Sino-Global Shipping America, Ltd. (NASDAQ:SINO) Q2 2017 Revenue Jumps 33.3%

Sino-Global Shipping America, Ltd. (NASDAQ:SINO)

Sino-Global Shipping America, Ltd. (NASDAQ:SINO) a logistics integrated offering provider active in non-asset based worldwide shipping, inland transportation management, freight logistics, and related services, released financial report for the second quarter closed December 31, 2016.

The performance

Sino-Global Shipping America, Ltd. (NASDAQ:SINO) reported that total revenues jumped 33.3% to $2.1 million from $1.6 million in the same period, a year ago. This increase in revenue can be primarily attributed to the result of a shift in company’s business mix, which resulted in increased revenues for the inland transportation management services, container trucking services and freight logistic services.

Gross profit margin for the second quarter jumped to 83.5% from 55.7%, mainly due to the firm’s shift in focus towards better margin logistics services. Sino-Global reported that net income for Q2 2017 was $0.8 million versus a net loss of $1.6 million in the comparable period, a year earlier.

EPS jumped 161.1%, to $0.11 per share. As of close of December 2016, the firm had cash/cash equivalents of $3.3 million, working capital of $7.7 million, shareholder equity of $12.8 million, accounts receivable of $1.8 million. There is no long-term debt on the books.

Mr. Lei Cao, the CEO and Chairman of Sino-Global Shipping America, Ltd. (NASDAQ:SINO), commented that the second quarter was strong, with a revenue increase of 33%.

The shift in services was executed last year in anticipation of worsening market scenarios in the shipping industry. As an outcome of this change in business model, the firm is recording higher profit margins and they consider the firm now better equipped to resolve the needs of expanding and evolving customer base.

Chairman Cao continued that during the last quarter they continued their attempts to address industry challenges, and last December they closed the release of their full-service logistics platform. The new platform links shippers with independent trucking organizations. Since launch Sino-Global has entered into deals with 2 key shipping conglomerates. These deals not only strengthen their associations with these businesses but, they anticipate, will lead to additional strategic partnerships and customers in the future.

Sino-Global Shipping America, Ltd. (NASDAQ:SINO) stock price closed last trading session with gains of over 23% and closed at $3.12. The company is confident that communication and information technologies can be adopted by conventional industries to fulfill contemporary demand and supply challenges.

3/17/2017
Ticker Symbol SINO
Last Price a/o 3:21 PM EST  $3.12
Average Volume  963.30K
Market Cap (mlns)  $25.43M
Shares Outstanding (mlns) 8.15M
Share Float (mlns) 4.29M
Inside Ownership 19.50%
Short Float 12.78%
Short Interest Ratio 0.57
Quarterly Return 1.96%
YTD Return 0.65%
Year Return 387.50%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

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

Globus Maritime Ltd (NASDAQ:GLBS) Jumps 56%

Globus Maritime Ltd (NASDAQ:GLBS)

Many analysts revised their stock ratings on Globus Maritime Ltd (NASDAQ:GLBS) after a shocking, DryShips-inspired recapitalization agreement diluted external shareholders by over 90%. The company released 5 million new shares to as many as 4 investors for total gross proceeds of $5 million. The placement price essentially calculates to merely $1 per share.

Moreover, the company released warrants to buy an additional 25 million shares at $1.60 per share. In order to erase $20 million in credit obligations, the company issued an additional 20 million shares to firms controlled by the Globus’s chairman – the debt conversion price was $1.

The update

The chairman’s entities received warrants to buy another 7.4 million shares for $1.60 per share. As a result, the new share count comes to 27.6 million, an immediate dilution of 90% for external shareholders. Even worse, the equity count should soon surge to 60 million considering the low warrant exercise rate of $1.60 and, importantly, the warrants are instantly exercisable. Final dilution would compute to 95.5%.

After the exercising of warrants and the debt conversion, Globus Maritime will have almost $57 million in cash and $45 million in total debt for a cash balance of almost $12 million, add roughly $50 million in fleet market value and the firm’s net asset worth post recapitalization comes to just $1 per share.

At a share price of $7, the firm ‘s market cap comes in around $17 million. Not bad for a deal that initially reduced the firm’s net debt by a mere $25 million and only gets the net asset value to above zero from negative territory.

Analysts initially considered that the additional shares can hit the market almost immediately, however the fact is these shares have yet to be registered with the U.S. SEC and looking at the contract terms, the new shareholders will have to wait at least 6 months before their allowed rights to demand registration turns exercisable.

It indicates, the firm’s registered share count of 2.6 million will likely remain unchanged for next 6 months with the free float considered to be even lower with the chairman being the firm’s controlling shareholder.

Considering these issues, analysts revised their recommendation. Globus Maritime Ltd (NASDAQ:GLBS) stock was a huge mover yesterday! The stock surged over 56% or almost $2.40 during the last trading session, closing at $6.74. About 3.72 million shares traded or over 1203% up from the average. The stock has gained 63.64% since last August 2016 and is in up trend.

3/17/2017
Ticker Symbol GLBS
Last Price a/o 3:21 PM EST  $6.74
Average Volume  745.15K
Market Cap (mlns)  $19.34M
Shares Outstanding (mlns) 2.87M
Share Float (mlns) 2.37M
Inside Ownership
Short Float 7.66%
Short Interest Ratio 0.24
Quarterly Return 17.83%
YTD Return 65.20%
Year Return 1023.33%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

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

NASDAQ:TOPS

Mysterious Kalani Investments Shows up In Annual Report of Top Ships Inc. (NASDAQ:TOPS)

Top Ships Inc. (NASDAQ:TOPS)

Following their February 17, 2017 earnings release, TOPS shares rocketed and nearly broke through the $5 mark. Top Ships Inc. (NASDAQ:TOPS), since then, slid to nearly touch $1 – until this morning. On massive volumes, TOPS shares are up over 100% in early morning trading.

The average daily volume for TOPS shares is just over 600,000. However, this morning, less than an hour into trading, more than 13.5 million shares of TOPS have traded hands. Top Ships Inc. (NASDAQ:TOPS) closed Wednesday at $1.05 then gapped up to open at $1.15 and have reached an inter-day high of $2.50.

The unusual price and volume activity could be a result of information gleaned from their annual report which was filed with the SEC yesterday. In it Top Ships Inc. (NASDAQ:TOPS) discloses: The following transactions were entered into by the Company and with an unrelated party, Kalani Investments Limited (the Investor)

This is highly noteworthy as Kalani is the mysterious entity behind some clever, and highly criticized, financing arrangements with DryShips Inc. (DRYS). DRYS shares are down 99.85% YTD.

The annual report continues:

On February 2, 2017 the Company entered into a Common Stock Purchase Agreement with the Investor, for the sale of up to $3,099,000 of shares of the Company’s common stock that the Company may sell from time to time to the Investor, over the next 24 months. In accordance with this Common Stock Purchase Agreement the Company issued 22,835 common shares as a commitment fee to the Investor. As of March 10, 2017, the Company has sold an aggregate 1,054,842 shares of its common stock to the Investor under the Common Stock Purchase Agreement, with the aggregate gross proceeds from the sale of $1,773.

The Annual Report continues about a Convertible Note deal with Kalani Investments:

On February 14, 2017, the Company entered into a securities purchase agreement with a non-affiliated non-US investor affiliated with Kalani, pursuant to which the Company sold 7,500 Series C convertible preferred shares to this non-affiliated investor for $7,500, which are convertible into a number of the Company’s common shares equal to the quotient of $1 divided by the lesser of the following two prices: (i) $3.75 and (ii) 75% of the lowest daily VWAP of the Company’s common shares over the 21 consecutive trading days expiring on the trading day immediately prior to the date of delivery of a conversion notice, but in no event will this conversion price be less than $0.25. In accordance with the sale of Series C convertible preferred shares the Company issued 72,910 common shares as a commitment fee to the non-affiliated investor.

The amount of dilution DRYS shareholders have experienced over the years can be generously deemed as “epic”. One can only wonder if the appearance of the mysterious Kalani Investements in the annual report of Top Ships Inc. (NASDAQ:TOPS) has a similar effect on TOPS shares.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

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.

Arotech Corporation (NASDAQ:ARTX) 4Q 2016 Revenue At $21.5 million

Arotech Corporation (NASDAQ:ARTX)

Arotech Corporation (NASDAQ:ARTX) revenues for the fourth quarter came at $21.5 million against revenue of $27.4 million for the same period in 2015. The YoY decline was led mainly by delays in executing and receiving new orders in the Simulation Division.

The update

Gross profit for Q4 2016 came at $5.6 million, or 26% of revenues, against $8 million, or 29% of revenues, for the previous year period. Arotech Corporation (NASDAQ:ARTX) reported that operating costs came at $7.3 million in Q4 2016 as against $6.8 million in the year earlier quarter. Fourth quarter 2016 costs included $1 million in early separation expenses with former CEO.

Operating loss for Q4 2016 stood at $(1.7) million, as against operating income of $1.2 million for the same period in 2015. The net loss from continuing activities for the fourth quarter came at $(2.0) million as against $702,000 for the same period last year.

Adjusted Earnings per Share for the quarter was $0.01 as against $0.07 for the same period in 2015. Adjusted EBITDA for Q4 2016 was almost $807,000 as against $2.6 million for the same period of 2015. Arotech considers that information pertaining Adjusted EPS and Adjusted EBITDA enhances overall understanding of its existing financial performance. It computes Adjusted EPS and Adjusted EBITDA.

Arotech Corporation (NASDAQ:ARTX) closed a transformative 2016 with more cost saving measures at the division and corporate level. Acting CEO Dean Krutty reported that the company’s Board helped drive the decline in cost structure with the negotiated separation deal of former CEO and the decision to discontinue Flow Battery business. Krutty added that they have accelerated their investment in Q4 2016 into one of their most promising business units – the hybrid power division of their UEC subsidiary unit in South Carolina.

The potential of this equipment as a key for Department of Defense measures to lower fuel dependence for forward deployed Marines and soldiers motivates them to remain the industry pioneer in hybrid power technologies. They consider that this investment along with others, will lead to considerably better results for this segment starting in 2018.

In the last trading session, the stock price of Arotech gained over 3% to close the day at $4.10. The company anticipates to achieve better figures from continuing operations this year.

3/16/2017
Ticker Symbol ARTX
Last Price a/o 3:21 PM EST  $1.75
Average Volume  245.21K
Market Cap (mlns)  $53.10M
Shares Outstanding (mlns) 30.34M
Share Float (mlns) 27.66M
Inside Ownership 0.80%
Short Float 8.07%
Short Interest Ratio 9.11
Quarterly Return -23.91%
YTD Return -16.67%
Year Return -65.95%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

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