|Shares Out. (in M):||0||P/E|
|Market Cap (in $M):||185||P/FCF|
|Net Debt (in $M):||0||EBIT||0||0|
|Entry||08/19/2008 11:26 AM|
|I'm at $0.30 per share, I took out cash before I did my p/e. But I took out cash before I compared raven and trimble as well. I'm expecting a little higher margin than analysts due to price increases and the new autosteer product, which should command a higher margin. The AGCO contract is very important, could eventually bring HEM to a double digit stock price by 2010.|
|Subject||Comp RAVN posts great #s|
|Entry||08/19/2008 11:27 AM|
|* Q2 earnings per share $0.38 vs. Estimate $0.32 * Q2 sales rose 24 percent to $69.3 million (vs. estimate $61.9M) * Flow Controls Division sells Precision Ag products had the strongest growth. Sales grew 93% from a year ago, reaching $22.7 million compared with $11.8 million in the second quarter last year. Both U.S. and international shipments were strong. * increasing product prices to optimize margins in an environment of rising material costs - note HEM and TRMB also increased product pricing recently Key Quotes: "While crop prices are down from the records we saw in the first quarter, they remain at very high levels," "Growers are still facing rising input costs for items including fertilizer and fuel. As a result, leading growers in the U.S. and international markets are turning to precision agriculture products, which increase their crop yield while holding down expenses."|
|Entry||08/19/2008 06:03 PM|
|Issambres839 - you've done a terrific job with your write-ups on HEM and I have benefited this year as I buy the dips (including this one). My own research has not uncovered anything significant beyond all the major points you already hit. One risk with any kind of technology-based company is that some new, superior technology will come out of left field to render obsolete the current leading technology. However, at the moment, there does not seem to be anything to challenge the cost/benefit/reliability leadership of GPS-based systems. Thanks again - elan19|
|Entry||08/19/2008 06:10 PM|
|I think you are right, that is why we are somewhat protected by the low valuation. Plus, you could short TRMB as a hedge, as it trades for twice the valuation.|
|Subject||FT article from today|
|Entry||08/19/2008 08:36 PM|
|Subject||RE: FT article from today|
|Entry||08/20/2008 12:57 AM|
|key quote from the article: "The new way to apply fertiliser, rather than blasting it all over the surface of the soil, is banding it exactly below where the seed will be placed next year," Mr Mitchell says. He can inject fertiliser ex-actly 10ins below the surface, in perfect rows, and return months later to plant in the same pattern. ***** This is a huge deal for precision ag providers, this basically requires autosteering and GPS.|
|Entry||08/22/2008 11:28 AM|
|thanks for the write-up, this looks very interesting. We met with the management team from Novariant the other week (they are raising preferred stock), and were generally impressed by (i) the overall market opportunity, (ii) management expertise, and (iii) the value proposition for farmers. |
I'd be curious to hear your thoughts on Novariant, and other industry participants in terms of how you see M&A and industry structure moving forward. You mention M&A, and i'm just trying to get a sense as to who would buy these guys? Deere, or other OEM? Why do you think the AGCO deal will happen soon, and does this open the door for other partnerships?
Also regarding the technicals - can you elaborate on 'margin call selling'? Was there a large holder who recently liquidated or someting to that effect?
|Entry||08/22/2008 01:23 PM|
|I don't have any current thoughts about Novarient, but I will check around thanks for your thoughts. Last I heard they were having problems, but this was late last year. I think that Trimble or RAVN could be buyers in this industry. So could Hexagon, the Swedish conglomerate that bought Novatel. AGCO or other OEMs could be buyers as well. I specifically heard that one broker gave at least two clients margin calls and then sold their shares of HEM. So, yes it was two large holders of at least 400K shares that were forced to sell on the Friday the 15th. There were some follow up shares on Monday and Tuesday as well.|
|Subject||RE: RE: Novariant|
|Entry||08/22/2008 01:38 PM|
|re Novariant - not intimately familiar with the situation but they breached covenants and are reworking their senior. Much more of a play on the GPS mining secotr, which is extremely compelling but very long sales cycle and the mass market is not there. They are targeting an IPO in 2009, the product / industry feels unique enough where you could almost see them getting this done amid a tough new issue market. Their ag product has been around for a while, really a question of how they grow their distribution channel. Agreed with respect to the OEMs, feels like the logical transition here.|
Certainly like Hemisphere's balance sheet as well, feels like barring a meltdown in the industry you see this thing much higher in a year. Counterintuitive - but drops in commodity prices might actually help these guys given the incremental productivity. Thanks again.
|Entry||08/25/2008 09:44 AM|
|AGCO announced this morning that TSD Integrated Controls is going to be the supplier of their next-gen GPS solution. How significant do you think this is? People were hoping for HEM to get the deal, this removes upside for HEM but do you think it creates as much downside as the market thinks right now?|
|Subject||RE: More margin call selling?|
|Entry||08/25/2008 09:54 AM|
|elan, see my previous post. This is definitely due to the AGCO announcement from this morning.|
|Entry||08/25/2008 10:06 AM|
|Thanks Joe - I can see why some would react to this announcement. While the range of possible earnings for next year is probably wide depending on sales growth rates (I figure .20 to .40 EPS for 2009), the stock price is still very cheap. A good chance to buy in volume for those who want to. Just my opinion. I added a little more this morning.|
|Subject||RE: RE: AGCO|
|Entry||08/25/2008 10:18 AM|
|This removes a big source of upside, but doesn't seem to add a whole lot of downside, AGCO isn't currently a big source of revenues for them. Maybe you can extrapolate beyond this and wonder why AGCO didn't choose HEM, but in and of itself I don't think it's a big deal because you really weren't paying for an AGCO contract at recent prices. FYI - the CEO and CFO did some more open market buying in the past couple weeks.|
|Entry||08/25/2008 11:54 AM|
|quick comments from Wellington West brokers|
• AGCO Corp. (AG-N) announces a GPS partnership with TSD.
AG-N indicated a new partnership with Topcon Sauer-Danfoss to supply
next-gen satellite-guided steering assist systems for core global brands.
• Potential negative implications from competitive threat to BEELINE.
We believe AG-N is ~80+% of BEELINE sales, and estimate ~$7M sales
@ ~50% EBITDA margins contribution from BEELINE in F09.
|Entry||08/25/2008 02:02 PM|
|Let's assume that HEM loses Agco as a customer. What would HRM look like next year? I estimate that HEM would do around $95 million in sales and $0.22 to $0.25 per share in earnings. Right now it trades at 12 times that $0.22 per share earnings outside of cash and 1.65 times sales. This is why HEM at these prices is such a good investment, you can have a lot of bad news come out and the stock is still selling for a very low multiple. That said, I think information should come out that will show that they haven't lost Agco as a customer and that Agco revenues will grow next year. I also hope to see a press release that shows a new contract being signed. I will post more information on this as I get it. I'm not sure what it is about August for this company, but we seem to be going through a deja vu moment with last year.|
|Entry||08/26/2008 01:45 AM|
|hate to play it, but I liked the write-up, was doing more work, but as I'm still fairly "dumb" on this space (and since 12x current eps isnt that cheap in value-land): 1 - if AGCO went with someone else, does this imply there are quite a few players with sufficient technology here? Is there an edge for HEM, or is there a risk that as a small player they may miss out on other large or exclusive deals and eventually lose business? 2 - for HEM to now put up nice growth #s for the next 2 years, what must happen and which end customers will purchase in larger size? Do they have any inked agreements providing a backlog or visibility for growth? 3 - who can or is HEM taking market share from now, and why - or is the thought that they maintain market share and current customers and grow with high market growth rates? 3 -|
|Subject||RE: devils advocate|
|Entry||08/26/2008 01:14 PM|
|1)I think growth in the market, especially internationally is such that many players can coexist in this market and still do will, including HEM. 2)What must happen is adoption for autosteering must continue strong and international markets adoptions rates increase. HEM doesn't need big OEM customers to continue growing. It was always gravy to the story. 3)I think market share is somewhat overrated, but they can keep growing with existing OEMs and still maintain their market share.|
|Entry||09/04/2008 04:16 PM|
|This stock outside of cash now sells for 1)10 times 08 estimates 2)7.6 times my 09 esitmate 3)1.7 times EV/S 4)1.3 times EV/S for 09 5) 13 times the first half of the year's earnings Why do comps such as RAVN/TRMB trade for 20 times earnings estimates for 2009 and near 3 times sales? And why was Novatel Wireless bought out for 4.5 times sales last year? This is silliness and should be taken advantage of, just like last year around this time.|
|Entry||09/05/2008 06:48 AM|
|any idea what the payback period is with current fertilizer and diesel prices, which are down 20-50% from peaks? is it still very quick? thanks...|
|Subject||RE: payback period|
|Entry||09/05/2008 11:45 AM|
|I think that the payback had fallen to as low as 6 months with fertilizer prices being so high. Its probably back to 1 year payback.|
|Subject||2.8 million share buyback|
|Entry||09/10/2008 08:33 PM|
|HEM announced after the close that it was initiating a normal course issuer bid to buy back up 2.8 million shares. One of the great things about being a very cash flow positive entity with $0.37 per share in cash is that you can use that $22 million in cash to take advantage of rock bottom ridiculous stock prices to the benefit of all shareholders. Anyone wondering why the stock is down so much only has to look to Canada, where the Toronto Venture index is down 44% YTD. Funds are blowing up left and right, margin selling is rife. Sprott Funds are holding a conference call tomorrow and RAB Capital is trying to stop investors from redeeming. This has spurred a massive flight out of these stocks and created an incredible bargain in HEM. I continue to think this is a screaming buy. Apparently so does management.|
|Subject||RE: 2.8 million share buyback|
|Entry||09/11/2008 09:31 AM|
|Would the upcoming buyback announcement have prevented insiders from buying? There had been some modest buying by the CEO and CFO on previous dips, and they bought some at the end of August, but given the AGCO news and the further decline it would be nice to see some more buying if they are allowed to.|
|Subject||RE: RE: 2.8 million share buyb|
|Entry||09/12/2008 04:31 PM|
|There was more insider buying reported today, 12,500 shares or so.|
|Entry||09/12/2008 04:32 PM|
|Someone please tell the corn market the commodity bubble is done and finished. It was up limit today. The grain markets including corn continue to be very tight and inventories very low. I expect prices to remain high and if we have a drought in a major grain producer watch out. HEM continues to be a ridiculous buy here.|
|Subject||worldwide GPS market to double|
|Entry||09/23/2008 04:58 PM|
|Worldwide Precision GPS Market Forecast to Rise to US$ 6-8 Billion by 2012 NewswireToday - /newswire/ - Brisbane, Queensland, Australia, 09/23/2008 - The worldwide precision GPS market is forecast to rise from US$3 Billion in 2008 to US$6-8 Billion by 2012 according to a new report by Position One Consulting Pty Ltd in conjunction with Eric Gakstatter, Contributing Editor to GPS World magazine. The report includes global trends, demand and applications for high-precision GPS technology; starting with precision GPS infrastructure, continuing through the market for GPS receivers, finished GPS goods and concluding with GPS augmentation and distribution services. Markets covered include surveying, engineering, agriculture, mining, deformation monitoring, GIS, marine and aviation for both machine control and non-machine control applications. At the core of the 200 page report are five year growth and financial projections for the high precision Global Navigation Satellite Systems (GNSS) markets surveyed as well as analysis of the competitive landscape. “The adoption of precision GPS and GNSS products and services, particularly for machine control, are reaping impressive productivity gains for innovators and early adopters”, said Rob Lorimer, Managing Director of Position One Consulting. “This report is in response to the growing demand for more detailed market intelligence regarding precise positioning products and services and the markets in which they are used”. Background and status of the entire spectrum of GNSS (Global Navigation Satellite Systems) includes GPS, GPS modernization, GLONASS and GLONASS modernization, SBAS (Satellite-Based Augmentation Systems), Galileo and Compass/Beidou, QZSS and IRNSS as well as technology/market trends and potential disruptions. The report was introduced at the Institute of Navigation GNSS meeting in Savannah, Georgia September 17-19, 2008.|
|Subject||RE: RE: worldwide GPS market t|
|Entry||10/10/2008 12:14 PM|
|I agree, but the market is not acting rational right now. I think this is a fantastic opportunity to buy. We are just in panic mode right now.|
|Subject||Latest Ag Equipment Survey|
|Entry||10/15/2008 03:39 PM|
|The latest survey of over 500 dealers in North America just came out today and it shows that the best bet for the third year running for increased ag equipment sales is "GPS and autosteer". The percentage of dealers who foresee higher sales actually increased from 97.4% to 98.2%. Further, 82% of dealers see the prospects for all ag equipment sales in 2009 to be as good or better than 2008 despite what is going on economically right now. Finally, in another report they highlight that the change to the "accelerated depreciation" tax code from the 2008 economic stimulus bill, which increases the amount a person can write-off from equipment purchases in the first year from $128K to $250K, is a big positive for ag equipment sales. And the graph on the last page which shows demand growing consistently, yet year-end stocks at historic lows, going back to the 1970s. This is very bullish for HEM.|
|Subject||RE: RE: Latest Ag Equipment Su|
|Entry||10/17/2008 12:28 AM|
|Thanks for the head's up, though at this valuation I'm not sure it matters that much. That said, it absolutely stunning that at 30-40 year lows in worldwide inventory, the current delevering is causing a short term squeeze on producers of grains, exactly when the world needs them most. Next spring could be a an absolute reckoning for grain prices, especially if there is a drought somewhere.|
|Subject||Best Year Ever for Farmers|
|Entry||10/19/2008 11:48 PM|
|There's sure no recession in U.S. agriculture - "Big Farm" is doing very, very well this year, according to data from the USDA: 1. Farm income in 2008 ($95.7 billion) is up by almost 64% compared to 2006 ($58.5 billion), see top chart above. 2. Farm real estate has increased in value by 53% during the last four years, from $1.34 trillion in 2004 to more than $2 trillion in 2008, see middle chart above. 3. Farm equity has increased by almost 50% since 2004, to a record $2.147 trillion, see bottom chart above. And the debt to asset ratio for farms is at a five-year low of only 9% (down from 11.3% in 2004), since farmers are carrying only $211 billion in debt on $2.359 trillion of farm assets.|
|Entry||10/23/2008 04:17 PM|
|And here's what they had to say about their Field Solutions division: Third quarter 2008 Field Solutions revenue was $64.4 million, up approximately 44 percent compared to revenue of $44.8 million in the third quarter of 2007. Revenue growth was once again driven primarily by strong demand for agricultural products. Third quarter 2008 operating income in Field Solutions was $22.1 million, or 34.3 percent of revenue compared to $11.9 million, or 26.7 percent of revenue, in the third quarter of 2007. Non-GAAP operating income in Field Solutions was $22.3 million, or 34.6 percent of revenue, in the third quarter of 2008 compared to $12.1 million, or 27 percent of revenue, in the third quarter of 2007. Expansion in operating margin was due primarily to strong revenue growth.|
|Subject||If this idea were posted today|
|Entry||10/23/2008 04:26 PM|
|It would be the first time I've ever rated an idea on VIC 9 or 10. I'd probably give it a 10. I can't recall if I rated this 7 or 8 when you posted this on on 8/18/08, but at this price it is possibly the best risk/reward I've seen in my career. HEM will have over .40/share in cash when they report on Nov. 4. Even assuming things slow a bit they'll earn .20/share next year easily. We just got confirmation from Trimble that all is well for HEM's segment. Stripping out the .40/share cash, this fast grower is trading at $1.20/share cash, or 6x (a pessimistic projection for) next year's earnings. I wasn't old enough to be investing in 1974 but perhaps we're getting a taste of what it was like. Wow.|
|Subject||RE: If this idea were posted t|
|Entry||10/23/2008 05:05 PM|
|I agree with you 100%, but fundamentals just don't matter right now. Its all about fear and selling. Eventually this will end and people will return to the market. All we need to worry about now is how is the business doing, in the end we will be rewarded. A large seller appeared to today and that is why the stock got hammered.|
|Entry||10/23/2008 05:48 PM|
|- Field solutions division was up 44% over last year driven by continued strong demand in Ag products. - not detecting any credit related problems in Ag yet. - expecting Ag to have strong double digit growth rates in FY09 (compared to extraordinary growth rates in FY08) - company is expanding their exposure to Ag and sees many opportunities in this market. - expect increased international sales|
|Entry||11/04/2008 09:32 AM|
|From Canaccord: 1) Revenues USD$13.2M up 46% yr/yr, Gross profit margins 51.6% and EPS (0.00) was better than consensus 12.6M GPM 48% EPS -0.01 (our forecasts 13.2M, GPM 50% /-0.01) 2) Company maintained FY guidance of revenue growth of greater than 45% (we believe mgnt will likely increase its FY guidance to better than 50% on the 11:00am CC) 3) Gross profit margins big positive surprise at 51.6% (slowest qtr of the yr) up 500 bps yr/yr, this should support current forward estimates if not cause some EPS estimates to increase in 2009 (street is 0.25-0.30 USD in FY2009) 4) FX trend of weakening cdn$ is positive for HEM margins (substantial cdn based operating costs), these margins were realized against a cdn$/USD$ spot of 1.06 (obviously we are at 1.18 now) 5) No signs of AG related slowdown 6) At C$1.70 share stock HEM has 20.5M in cash or 0.37/share, is trading at 4.4X 2009 EPS , growth rates in excess of 50% (and company now benefiting from favourably FX trends) 7) Company bought back 181,00 shares in Q3 @ 2.46/share Why the heck is this at $1.70? Seriously, this is one of the most ridiculous malfunctions of the market that I've ever seen. 46% revenue growth, much better than expected margins and the stock is at 4.4X earnings?|
|Entry||11/21/2008 12:47 PM|
|Someone asked me the following questions, most of which I don't have the answer to. Some of the questions in the first paragraph you've addressed, but I though some of the comments/questions in second paragraph were pretty interesting. What's your take on these: The market for precision ag probably won't be saturated for another five years. Is this a big enough market for all the players? Does HEM sell a better mousetrap or are all the systems comparable? It appears that they may have a cost advantage. I'm under the assumption (maybe wrong) that most new tractors will have GPS and auto-steering as standard equipment. Does that then leave HEM just fighting over the used tractors over the next five years? Tractors have a LONG lifespan. There are farmers out there still using 20-30 year old tractors. Can really old models be fitted with these systems?|
|Entry||11/21/2008 01:49 PM|
|I think saturation will take a bit longer than 5 years. Note that GPS guidance is 20%, but autosteering is only 5-10% and I believe that this number will go to 75% to 80% in North America. Further, in the rest of the world penetration is only 1% or less. I think this market will grow for the next 10 years. Second, Hemisphere just doesn't sell in the aftermarket. They also sell through OEMs, such as Agco, Claas and Stara. Finally, you are thinking that technology advances won't cause people to upgrade to the latest and greatest technology, such as touch screens, interactive mapping and more. One more note, Hemisphere does have a cost advantage and it is causing the industry to be tugged down where they are, also the drive by wire technology they have now because Beeline is a competitive advantage.|
|Subject||Any updates on this name?|
|Entry||04/11/2009 06:44 PM|
There were two target price cuts on thrursday (Canaccord and Fraser). An update on what is going on with Hemisphere would be appreciated.
|Subject||RE: Any updates on this name?|
|Entry||04/13/2009 05:28 PM|
It looks as if q1 is going to be somewhat disappointing with revenue falling from last year. What seems totally ridiculous is the valuation, especially compared to comparables. The market is pricing Hemisphere as if it is going bankrupt. A very difficult proposition considering it has $16 million in cash and no debt and is going to earn $0.10 a share this year.
Why does this trade below book value, when RAVN trades for 3 times book? Why does this trade at a 5 p/e outside of cash and RAVN sells for 20?
The key for Hemisphere is that they are coming out with a brand new product in late summer that should give it a tremendous competitive advantage and technological leap forward over competitors. Their new product will allow auto-steering to be pre-programmed with turns within sub-inch for $25K or so. This new product driven by drive by wire should allow HEM to announce much better than expected 2nd half numbers.
If this valuation continues I expect the company to be either taken private or bought out.
This is just such an absurd price for a profitable, technology company with very good long term prospects.
|Entry||04/14/2009 07:39 PM|
I think there is a compelling opportunity to buy HEM and short RAVN. HEM trades for less than book value, RAVN for three times book. HEM sells for 5 times this year's earnings, RAVN trades for almost 20 times.
I think investors in RAVN are in for a rude awakening, when they wake up to the fact at how bad the rest of RAVN's businesses will be outside of precision ag. I thought of posting RAVN as a short idea here, but I'm too busy. And in a sneaky way look what RAVN just announced after the close:
|Subject||RE: RE: RAVN|
|Entry||04/15/2009 02:42 PM|
Because, some of their business in that Applied Technology business is not precision ag, it is other products. I also think that scale has something to do with it as well.
Normalized, Hemisphere should have aorund 20% operating margins. Its just things haven't been normal since their market fell off a cliff in December.
It will be interesting to see when RAVN reports, how their margins will hold up.
|Subject||Questions for VIC members|
|Entry||04/29/2009 12:19 AM|
How does a company that has no debt go from having a $250 million market cap to a $15 million market cap excluding net working capital?
While clearly $5 per share last May was too high in hindsight, is US$0.75 a little ridiculous?
|Subject||RE: Questions for VIC members|
|Entry||04/29/2009 08:58 AM|
Hi Issambres. . .I don't know anything about this company, but to your question of:
"How does a company that has no debt go from having a $250 million market cap to a $15 million market cap excluding net working capital?"
Obviously one potential answer is "Because the company is worth $15mm"
Given the desperate nature of your question I wanted to at least write down the most obvious response. I do this not to be a jerk, but because you seem to be insanely frustrated and at the very least it's good to try to think clearly about such things. Mr. Market revalues companies all the time and it can be really exasperating when you think he/it/whatever is totally wrong. But you have to make allowances for the divergent opinion. I'm sure you're thinking about this question all the time, so sorry if this seems condescending. . but i dunno... how else could an uninformed VIC member answer your question?
|Subject||RE: RE: Questions for VIC members|
|Entry||04/29/2009 09:18 AM|
Do you trust management? How are they compensated / have they shown a propensity to act in the best interest of shareholders? That has been the problem I have had with other Canadian small caps (management dishonesty/reckless compensation).
|Subject||RE: RE: RE: Questions for VIC members|
|Entry||04/29/2009 09:24 AM|
may be irrationally discounted but even the bullish canadian analysts only seem to have them doing $5mm EBITDA this year. given that this is a company that relies on farmers to expend $$ in this crazy environment, doesnt seem hard to believe that could have a very low EV particularly if people aren't comfortable that mgmt wont do something dumb with the cash
|Entry||04/29/2009 09:54 AM|
Thanks for your responses. I am frustrated to say the least. I believe management is honest and their compensation is not high or outrageous. I just wanted to point out how incredible the reversal of fortune has been for this company and see if I could get specific reasons why it has fallen so much.
I understand that I was wrong and that business has been worse than expected, but I don't get half of book value and 0.2 times sales.
Thanks for the replies.
|Subject||RE: RE: Questions for VIC members|
|Entry||04/29/2009 11:09 AM|
To reinforce Oogum's point, there were literally hundreds of debt-free tech companies which fell 90% (or even 99%) after Nasdaq crashed. Some are still down 95%+ from their highs nine years later, despite significant growth. I don't know if 250m was a dotcom-type valuation for HEM, but things did get a little bubbly in ag for a while.
Also, "15m mrket cap excluding net working capital" is a little silly. Actual market cap is closer to 50m. At least the market awards HEM a premium to net working capital; that's not something you can count on these days. Finally, your frustration with HEM vs. TRMB is understandable but TRMB is 10x bigger. There's a reason investors prefer bigger companies. Even Ben Graham wrote of limiting yourself to companies with 50m in assets (more like 500m++ today). I have been late to accept this truth, but bigger companies have more staying power in downturns and thus deserve a premium valuation when times are tough.
|Subject||RE: RE: RE: Questions for VIC members|
|Entry||04/29/2009 11:24 AM|
Thanks per the Benjamin Graham thoughts. Now if only I had realized that this company would become a $50 milion market cap company, life would have been a lot easier. Do note that they have about $0.27 in cash, so on an EV basis the company is worth $34 million.
And the reason I chose net working capital is that we could literally liquidate a profitable company now in arguably a growing industry and sell the technology, distribution network, p,p&e for $15 million, which is a third of future sales.
I'm basically waiting for a takeout offer now, which should come by year end.
|Entry||05/27/2009 09:33 PM|
The key difference between TRMB and HEM, is the distributor network. TRMB routinely requires its distributors to carry inventory and routinely tries to smooth their numbers out with having distributors carry more inventory or to carry a lot of new product. So their sales benefit from dealer and distributor buying not end customer. HEM's is straight to the end user. So, when demand did not surface in March, it was surprise to HEM and immediately hurt sales, but not so for TRMB, who would have had distributors carry the inventory.
Further, TRMB made two large acquisitions in the Field solutions division, which it includes as growth, but really isn't.
HEM actually believes they are growing marekt share in the product areas in which it competes. I don't believe they are misleading us and I think q2 will be better than q1.
Hope that helps.
|Subject||RE: how are you thinking|
|Entry||08/17/2009 01:00 PM|
I was incredibly disappointed by the last earnings number, which was far below what I expected. I think the company is worth more sold or liquidated now than kept running. I am waiting for either an improvement in the results by year end or a sale of the company or an announcement of some kind of strategic initiative.
I really blew it on this one and am sorry that anyone lost money on this. I think that the company could get $1.50 to $2 in a sale, and that is what I'm holding on for. If there is just the same old, same old by November, I'm out. My other stocks are just a lot more compelling and are doing much better.
|Entry||08/31/2009 11:43 AM|
Given the financing that was done at 3.15, is there any reason to suspect that the company will make a strategic alliance or get acquired in the near future? Is your last message just a prayer, or is there some reason to suspect something will happen in the near future? Thanks.
|Entry||09/01/2009 03:30 AM|
I just got back from meeting with the company and I think there may actually be some rays of sunshine on the horizon. I will post more later. As to your question, I believe the company has valuable technology and that someone would be willing to acquire it.
|Subject||RE: RE: issambres839|
|Entry||09/09/2009 10:59 AM|
Any further detail on the rays of sunshine?
|Subject||RE: RE: RE: issambres839|
|Entry||09/09/2009 07:35 PM|
I went to their analyst day and they showed off their new Edrive X that autosteers tractors within 2 centimeters. They are going to price it 30-40% competitors and I think going to sell a ton of them, especially to their own customers who don't have that level of accuracy already. This new product will also allow them to address the planting market, as opposed to spraying.
Management also addressed their problems and it looks like next year will be a lot better. I'm going to wait to see some tangible signs, but if my impression of management body language and new products are right, HEM will see sun early next year.
|Subject||Still Follow This?|
|Entry||05/11/2010 10:03 AM|
any current thinking? still a potential takeover target?
|Subject||RE: Still Follow This?|
|Entry||05/11/2010 01:39 PM|
What a disappointment this company has become. Their latest quarter is a mess. Inventory is still out of control and they have a big delay with their Edrive X. I think the company should be sold to a larger competitor. I would generally avoid unless you are playing for a takeover.
|Subject||Any thoughts on recent developments?|
|Entry||03/11/2011 12:49 AM|