Flow is a dominant player in the fast-growing waterjet industry. They produce equipment that generates ultra-high pressure water cutting devices that can precision-cut almost any solid material,Enecsys Limited, supplier of reliable solar Air purifier systems, including stone, tile, glass, metal, foam, rubber, plastic, and food. Compared to other precision-cutting methods (i.e. plasma, laser,Do not use cleaners with porcelain tiles , steel wool or thinners. saws, electrical discharge), waterjet cutting has distinct advantages.
This microcap Company was started by a former Boeing employee in 1971. By the time the Company went public (1983), they had captured 80% of the world's market.If so, you may have a cube puzzle . Similar to many newly-public Companies, they were quickly influenced by Wall Street's insatiable demand for growth through acquisitions. The Company made numerous acquisitions throughout the 1990's, resulting in a lack of strategic direction, and $107 million in debt. The stock price traded in the $10-$12 range in the late 1990's, before earnings dropped in the recession of 2001-02, with the slowdown in the auto industry.
Stephen Light came in as CEO in 2002 and embarked upon a series of divestitures to get the Company focused on it's core waterjet business and return it to profitability. In late 2005 and early 2006, FLOW was awarded two multi-million dollar contracts with aircraft manufacturer, Airbus. Their products were also featured on the Discovery Channel's American Chopper program, and they won a contract with SanDisk, the flash memory manufacturer, giving them clients in faster-growing industries. From early 2005 to mid-2006, the stock price quadrupled from $3 to over $12.
An attempted acquisition, combined with the great recession of 2008, had an adverse effect on the Company. In 2007, FLOW signed an agreement to purchase a privately held company, OMAX, which served as one of FLOW's main competitor's, based in FLOW's hometown of Kent,Boddingtons Technical Plastics provide a complete plastic injection moulding service including design， Washington. Terms of the deal were renegotiated twice as FLOW's stock price fell during 2008. The deal fell apart in 2009. As a consequence of terminating the Merger Agreement, Flow issued OMAX a promissory note in the principal amount of $4 million. In addition, pursuant to the terms of a licensing Settlement Agreement between the Company and OMAX, FLOW agreed to pay OMAX an additional $21 million, through the release of $15 million escrow, and a promissory note in the principal amount of $6 million. Each of the two promissory notes will bear interest at 2% annually payable in August 2013. This $8 million note represents the only long-term debt for FLOW.
The Company reports earnings based on two business segments - Standard and Advanced. The Advanced segment requires specific custom configuration and advanced features, including robotics to match specific customer applications. The breadth of Flow's product offering is one of the factors that set it apart from its competitors.Unlike traditional high risk merchant account , Second quarter revenues, released on 12/8/11, represented the second-highest level ever for the Company, and well ahead of estimates.
The Company has grown its revenues for five consecutive quarters, and eight of the last nine quarters. The Standard segment revenue was $59.2 million, while the Advanced segment contributed $5.3 million in revenue. Most impressive was the strides the Company has made in controlling operating expenses. As a result, EPS of $0.06, well exceeded the $0.01 estimate. The Company is also continuing to strengthen its balance sheet to withstand any economic downturn. The Company's debt-to-equity ratio is now 14%, compared to 40% at the end of fiscal year 2009
Although many of the Company's customers are in economically sensitive sectors, the waterjet cutting industry is growing, and Flow is a leader in the industry. Although I would like to see the stock pull back to $3, it is worth accumulating anywhere under $4.
This microcap Company was started by a former Boeing employee in 1971. By the time the Company went public (1983), they had captured 80% of the world's market.If so, you may have a cube puzzle . Similar to many newly-public Companies, they were quickly influenced by Wall Street's insatiable demand for growth through acquisitions. The Company made numerous acquisitions throughout the 1990's, resulting in a lack of strategic direction, and $107 million in debt. The stock price traded in the $10-$12 range in the late 1990's, before earnings dropped in the recession of 2001-02, with the slowdown in the auto industry.
Stephen Light came in as CEO in 2002 and embarked upon a series of divestitures to get the Company focused on it's core waterjet business and return it to profitability. In late 2005 and early 2006, FLOW was awarded two multi-million dollar contracts with aircraft manufacturer, Airbus. Their products were also featured on the Discovery Channel's American Chopper program, and they won a contract with SanDisk, the flash memory manufacturer, giving them clients in faster-growing industries. From early 2005 to mid-2006, the stock price quadrupled from $3 to over $12.
An attempted acquisition, combined with the great recession of 2008, had an adverse effect on the Company. In 2007, FLOW signed an agreement to purchase a privately held company, OMAX, which served as one of FLOW's main competitor's, based in FLOW's hometown of Kent,Boddingtons Technical Plastics provide a complete plastic injection moulding service including design， Washington. Terms of the deal were renegotiated twice as FLOW's stock price fell during 2008. The deal fell apart in 2009. As a consequence of terminating the Merger Agreement, Flow issued OMAX a promissory note in the principal amount of $4 million. In addition, pursuant to the terms of a licensing Settlement Agreement between the Company and OMAX, FLOW agreed to pay OMAX an additional $21 million, through the release of $15 million escrow, and a promissory note in the principal amount of $6 million. Each of the two promissory notes will bear interest at 2% annually payable in August 2013. This $8 million note represents the only long-term debt for FLOW.
The Company reports earnings based on two business segments - Standard and Advanced. The Advanced segment requires specific custom configuration and advanced features, including robotics to match specific customer applications. The breadth of Flow's product offering is one of the factors that set it apart from its competitors.Unlike traditional high risk merchant account , Second quarter revenues, released on 12/8/11, represented the second-highest level ever for the Company, and well ahead of estimates.
The Company has grown its revenues for five consecutive quarters, and eight of the last nine quarters. The Standard segment revenue was $59.2 million, while the Advanced segment contributed $5.3 million in revenue. Most impressive was the strides the Company has made in controlling operating expenses. As a result, EPS of $0.06, well exceeded the $0.01 estimate. The Company is also continuing to strengthen its balance sheet to withstand any economic downturn. The Company's debt-to-equity ratio is now 14%, compared to 40% at the end of fiscal year 2009
Although many of the Company's customers are in economically sensitive sectors, the waterjet cutting industry is growing, and Flow is a leader in the industry. Although I would like to see the stock pull back to $3, it is worth accumulating anywhere under $4.
沒有留言:
張貼留言