CEMTREX, Inc, CETX $2.62 deep discounted value with huge growth potential short and long term.
This company actually produces real products that people want. It is not a social media, get high stock or a pipe dream.
The founder of Priceline(PCLN) majority shareholder of a corporate shell with $24 million in cash and no debt ~ looking for an acquisition or merger~ WLKR
$24,000,000 could find a $100,000,000.00 company looking to go public!
SEE OPINION ON GO PRO~GPRO
Cemtrex,Inc ( cetx~ $2.62) 52 week range $2.39-$8.40 www.cemtrex.com Cemtrex (NASDAQ: CETX) is a global, diversified industrial & manufacturing company that provides a wide array of solutions to meet engineered electronics, industrial contracting services, monitoring instruments for industrial processes & environmental compliance, and equipment for controlling particulates, hazardous pollutants, and greenhouse gasses. The company has exposure in 5 ETF's. Ranked #184 out of top 500 in North America according to Deloitte's 2017 tech fastest 500. Named to Crain's New York Business fast 50 companies. Just announced CETX has introduced via a newly formed sub a Smart Desk IoT product. The Smart Desk is targeting the office place market and is designed to help companies adopt the most advanced technologies available and tremendously increase employees productivity. According to management, " with over 60 inches of intelligent touch display area, exclusive custom applications, and advanced content touch management systems, the smart desk is slated to be a giant leap ahead of current productivity solutions in the market today". The Global Electronics segment spent $440 billion during 2016 and is expected to reach $600 billion by 2021. Only 10.2 mn shares outstanding & management own 45%. The stock is trading @ its 52 week low. Recently reported $120 mil in rev for fiscal 17 and had net income/sh of .31 fully diluted. CETX is currently trading @ $2.58 with current earning(.31) yielding an actual PE of 8.1X. The company grew by 29% this past year and in our opinion could easily sport a 18X PE or a share price of $5.58 over double the current share price. The current book value is $3.80 and CETX could easily trade 1 1/2 to 2x book and the stock would be valued at $7-$8/sh a fair cry from currently depressed levels of $2.58. The PSR is just as ridiculous ~ currently sporting a .2x! If we traded a 1x sales CETX would trade at $10. A share buyback during March 2017 ~ 300k shares. This has to be one of the cheapest and overlooked investment opps. out there. As the Trump vision takes greater hold on our emerging economy a company like CETX is sure to prosper greatly during the next few years. Don't forget the .02 dividend that surely could be increased dramatically. See current presentation December 5, 2017.
This company is growing rapidly either via organically and/or aggressively by acquisition~ we see little downside risk at current levels and have placed an $8 target for 2018 and a very Strong Buy rating at current levels.
Walker Innovations Inc. ( WLKR ~.55)
webiste: ~ http://www.walkerinnovation.com
phone:~203 263 9362
52 week range: ~ .30-.62
Shares outstanding: 20 million common and 15 million Preferred B converted into 15 million common at any time. There are also 5 million options largely out of the money. Not that important. We will be using 35 million fully diluted for our calculations.
cash:~ $24,659,000 ~NO DEBT
Fully diluted:~ cash/sh .70
NOL:~ $10 million
It appears that there are only around 2 million shares within the public float. Walker owns 15 million preferred and 10 million of the common shares. There remains some 10 million shares and most of that is owned by management and a few funds that may be directly connected to management. Our best estimate is that the public owns around 2-3 million shares that are in the float.
Management:Jay Walker~ Founder of Priceline.com. As an inventor he has his name on more than 500 issued and pending US and international patents, making him one of the world's most prolific individual living inventors.
He also co-founded Synapse, a company that leveraged the credit card processing network to revolutionize the magazine subscription business.
He was twice named as one of the "50 most influential business leaders in the digital age" by the editors of TIME magazine, Businessweek selected him as one of its 25 Internet pioneers most responsible for "changing the competitive landscape of almost every industry in the world", and Newsweek cited Jay Walker as one of the 3 executives at the FOREFRONT OF THE INTERNET COMMERCE REVOLUTION.
The rest of management should not be overlooked. Please review their bios located within the website.
As mentioned within their filings~ the company is in pursuit of a merger candidate, acquisition or other business opportunities that can enhance shareholder value. The balance sheet is super clean with zero debt and $24+ million in cash and a $10 million NOL.
The company at present has around .70/sh in cash and .28/NOL~It would not unusual for this stock to trade at 2X cash or $1.40 when you take into account cash+NOL and a management team that is "totally plugged in ".
When you consider the experience that encompasses "Jay" concerning the Internet you would have to easily assume that he and his team are looking very hard at "Blockchain" and Crypotocurrency.
Blockchain~ a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly.
From the bio of Mr Walker it is easy to conclude that he may drive this "shell" company in that specific direction. We have no inside knowledge of this fact, but when you read his bio it is very easy to conclude that he could and if it does in the current environment that this stock could easily go to $15+ dollars overnight!
When you add Internet Pioneer and Internet Commerce together it is very easy to conclude that heading in the future of Internet commerce "Jay" has the ability and cash horde to take this industrial segment by storm.
Note: Many companies that are entering the "Blockchain" industrial segment cannot even compare to the knowledge and mental capability that Mr. Walker possesses. You just have to look at his history.
If he decides to go conventional with his cash horde of $24 million it is also easy to conclude that merging with or acquiring a $100 million revenue based private company looking to go public would not be a "unicorn" dream!
We have a .60 stock that could explode anytime and make a patient investor a lot of money. ( look at RIOT and LFIN)
We are not intending to hype or mislead, but instead to look into the potential future of WLKR!
WE RATE WLKR WITH A STRONG SPECULATIVE BUY RATING BASED UPON BLUE SKY UPSIDE FOR SHORT AND LONG TERM INVESTOR TYPES THAT HAVE THE ABILITY TO READ BETWEEN THE LINES.
Stocks recommended during the past 22 months-Jan 16th 2018
OPXS------.70-------$1.09 --Strong B
OPXXW----.15---- 40. --Strong B
Both pay .02/common & warrant Jan 19th 2018-quarterly dividend.
ESMC---- .10--------.20 ------BUY
STRI-----.26------.28. ---Strong Buy
AETI---------$1.60-----$1.75 -- BUY
WPCS-----$1.25------$1.32 -- BUY
BSG-----$1.33--$1.47 ------- BUY
HEMA-----.35---$3.75 ----Strong Buy
The company announced that OneBlood exercised the 2nd tranche Option at the end of 2017. Oneblood purchased 363,786 common shares @ $3.44. Please recall that during December 2017 when the stock was trading under $1 that OneBlood bought 727,572 common shares from the company @$3.44/sh
A true sleeper that has increased in value for SA investor's by 10X. Of course we all want more of these!
I would not be surprised if one day Oneblood buys the whole company for many time the current level. We hope that HEMA will apply for NASDAQ sooner than later. It would give the share price a huge premium over the current undervalued levels.
VII-----.41------.43 -Strong BUY
LPAD-----.80----$1.03 bought out
ARWR-----2.80----$5.72 --Strong Buy
Go to their website http://www.arrowheadpharma.com review the Jan 08-10, 2018 presentation @ JP Morgan's Healthcare Conference . We hear positive things from JP Morgan about ARWR and we hear that AMGEN renamed a drug that ARWR has been developing for AMGEN. I believe that AMGEN eventually takes the whole company. Remember they are funding ARWR for their development of drugs. The company also continues to seek other partners for other drug development.
BK filing~common share holders will get wiped out.
VUZI-- $6.35---$8.55 Strong Buy
VUZI named "Best AR @CES 2018 by TechRadar. At the show Vuzix showcases Alexa-enabled Vuzix Blade Smart Sunglasses @ CES.
Rhodium the metal $1480/oz-----$1700/oz ---Strong Buy
CETX------$2.62 current recommendation
As crude continues to firm and reaching 3 year highs it is in our opinion that the juniors will start to really gather steam (snde/sdcjf- same company).Majority of acreage and production in the EF (Texas), intending to sell OK acreage. Currently getting $6-7/bbl above WTI.
It should be noted that since the US dollar is making 3 year lows it has added an extra few dollars to the price on the upside. When you consider the potential disruption of crude at any moment in time either in Libya,Iraq, Iran and Saudi Arabia , Venezuela and Nigeria and the tightening of world supply that crude could sky rocket. There is always the calm before the storm. Sure the "frackers" can start up new projects more rapidly than ever before and wells waiting for completion that have been dormant for year can be completed and connected to pipelines.
Regardless, it looks like Oil has been firming and we have not seen this price in crude in 3 painful years. Other plays that we watch ~WLL,SN, OAS,CLR, AXAS & NOG
The pioneer in wearable cameras. The company was a darling during the summer of 2014. The IPO price of $23.15 soon rocketed into the heavens and topped out at $98 on or about 9/29/2014.
This is where the fairy tale ended and the nightmare began and recently visiting the 9th level of Hell~ $6.23.
Their cameras are everywhere and created a culture that made movies of any and everything concerning extreme sports to even extreme sports behind closed doors! The company had it all for a short while.
We had pricing issues, product flaws, introduction delays and China. The company even got into the drone business ( drone business had a hard landing "crashed").
We assume that the balance sheet has gotten worse since the Sept 2017 Q release. At that time there was around $1.37 in cash/sh, the goodwill $1.00 and inventory was $1.22. The stated stockholders' equity was $2.34. The income statement is horror show~ the company made .10 for the 3rd Q, but still lost .92 for the 9 months.
Note: GPRO has revenue of over 1 billion for 2017- they just cannot make money! We believe that the real book value is much lower because of inventory write downs, goodwill and intangible don't mean much for our platter, heavy debt load and recent drone write-off.
Sure new products and price reduction for current and older models might help, but the flares are RED!
At this point in the game these little sport cameras mostly have the same insides as everyone else and most current sport cameras are 4k or HD and capable of doing everything the no-name brands can do and maybe better for cheaper.
The big banana is China and they are eating them alive and the largest factor is cost. We all know that Chinese workers get a grain of rice/day for wages and their medical insurance is a box of bandages. This why they cannot compete. There is nothing proprietary anymore in these little boxes of joy, labor and product costs are too high and GPRO has survival issues as a stand alone .
In the end we believe GPRO will be bought out by a Chinese firm or a South Korean behemoth . Hard to believe that the suitor will pay cash, but instead shares.
Can GPRO reinvent ~maybe!
At this point in the game i would wait for lower prices before i took a "shot" because this camera may have limited battery life left!
WE MAY BUY, SELL AND OR HOLD AT OUR OWN DISCRETION .We currently own shares in all stocks mentioned..
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