Metal recyclers do well when energy is expensive. Hope that helps.

uh no. they had to get convenants lifted by their lenders because they were tripping them up, that are in constant financial distress. They couldnt even pay the debenture holders back when they put their bonds back to the company last summer.

I get that you hate every takeout, but enough. you already said your piece earlier. the above is just misinformation.

How many beers in do you have to be to respond to a steelhouse post?

Let me ask a dumb question. What's a takeout?

how many beers do you have to be in to answer ^^^

Why not give $.30 or $.60 to Weitzman for his shares if he thinks they are worth that much? According to their quarterly they are doing record shipments. Steel and non-ferrous prices are in a cycle low, of course profits are going to be low. Like the metals market, the stock price is just in a down cycle.

http://finance.yahoo.com/news/metali...133000762.html

Stock price
Jan 2015: $.58
Jan 2014: $1.81
Jan 2013: $1.93
Jan 2012: $3.64
Jan 2011: $5.55
Jan 2010: $4.93
Jan 2009: $2.45
Jan 2008: $10.59
Jan 2007: $4.80
Jan 2006: $4.45
==============

MEA's average 10 year price is about $4. That is the fair price.

I would be like if gold dropped to $100 per ounce and someone said, I want to buy up the worlds supply of gold for $110 per ounce. MEA is a deep value stock with good management in that the are getting record shipments, however poor management in returning profits to shareholders. They have $40 million in cash, $250 million in tangible assets, and $150 in total liabilities.

MEA has 4 years of dropping prices, they should could sell it when they have 4 years of rising prices. However, there would be no buyers then.

Why would anyone want $1 a share, when they could get $4 a share if prices of steel and copper just stabilize or rise a little bit.

once again, because they are almost bankrupt

Cut ZGNX for a 40% loss. First and last time I ever invest in something like that.

Current positions: AGO, ACAS, ACW, HOS, NTT, PRSC, REGI, OUTR

Added CHK.

playing a bounce in energy?

Over the long run yes. If oil recovers it gains multiples, but if it does not it falls by 33% maybe. Pretty good risk/reward profile.

RPXC is an interesting company. No debt, cash-flush, and they have a lot of intangible assets which for them are akin to inventory (patents). The company has grown revenues significantly over the past few years, while the cost of revenue & SG&A have also increased substantially. So there's been 0 bottom line growth. The stock has stayed fairly stagnant since its IPO, but the balance sheet has become far stronger over the past couple of years.

One can imagine that with some financial discipline in the management, the company could be making quite a lot of profits. It seems to be trading at a ridiculously low multiple versus potential, as evidenced by the EV/EBITDA.

Added DRC.

Their business model is suspect.

how is it suspect? Patents are a gigantic industry.

MEA down 25% today on news that they're delaying filing their 10-K. "Metalico stated that it is in talks with its senior secured lenders about future compliance with terms of its debt as a result of further downturns in the scrap industry and their impact on the Company's financial statements...Metalico continues to meet all its obligations to its various constituencies and is focused on maintaining a sustainable capital structure pending improvement in its business."

Patents are a gigantic industry, but patent trolling is dying off due to new regulations and a rather coordinated effort by all the major tech companies to thwart trolling. And if the patent trolls start disappearing, then there is less of a need for defensive patent aggregators like RPX.

Sold DRC for 3% gain over one week. Did not expect it to ramp up that much so quickly. Thanks jb!

sold my first tranche at the open yesterday .52. Total return on that piece 185%. I think it closes the year at $1.00 but id be stupid not to take some off the table here.

Dividend too, interesting.

You do a lot of investing on the tsx venture Ahnuld?

MEA reported terrible earrings and they expect to be in breach of their loan covenants, this company seems like a couple quarters away from going under they're nuts to decline Weisman offer.

Ownership transfers to the bondholders. I actually bought some of the stock. I am starting to wonder if the bondholders in many of these companies are really the current owners. The bond interest is sent before corporate income tax and in NYC that is probably 3 taxes federal state and local.

It appears that many of these companies like MEA really pay no dividend or do anything for the shareholders. Mainly they seem to reduce liability of the owner. I rather go bankrupt than to have the CEO take my shares out of my account.

I am starting to see value of enterprise value. That is the present cost a company free of debt.

marketcap+total debt-cash.

The quarter was not that bad you can add back in depreciation and impairment charges and you can also consider it was during a very snowy winter. If you add back those in you are looking at a about $0.5 million operating loss.

"going concern" does not look good. Steel industry is producing more supply even though they are losing money. "The have the gold miners insanity", where the only thing that matters is the amount of gold they find. If you watch Alaskan gold Rush, they all want to find 2000 ounces, screw the investor and banks that have to pay for all the equipment.

shares outstanding increase 7 million so I amy sell it as management is going to dilute Weitsmans shares away.

I hypothesize that when interest rates are low, dividend stocks become over-valued because dumb money moves from bonds to dividends as they are seeking higher yields. Thoughts?

I would not call it dumb money, but it is tempting to have a real dividend. Historically non-dividend stocks have been overvalued. Today small cap stocks are overvalued compared to large cap stocks.

some stocks picks: CVO, IHRT, JCLY, ARO, SWSH, DXM
some additional stock picks: FOSL, MSI, ASPS, IBM, HGG, OAK, HPQ
some mainly residential REITs: SBY, RESI, O, ARPI

By "dividend stocks", I didn't mean stocks that merely give dividends, but stocks that are highly sought after by "dividend investors" (i.e. high yield and history of increasing dividend).

I think that stocks that give minimal dividends (~0.5% yield) are likely good because they show that management is realistic in their ability to invest money into the company.

I love no brainers. sold a bit more at 63c yesterday