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December 2013



Cal Dive International - Bobbing for Apples

December 31, 2013 – Comments (0) | RELATED TICKERS: CDVIQ

Cal Dive International, Inc. - (Reviewed 12/31/2013)
Cal Dive International, Inc. (NYSE: DVR) – Sell based on a recent price of $2.02 and a fair value estimate of $12-$14.

The company is a marine contractor which provides manned diving, pipelay and pipe burial, platform installation and platform salvage services to its customer in the offshore oil and natural gas industry.

While a fair value estimate for the stock is $12-$14, the simple fact of the matter is the markets will never allow the stock price to move that high as long as current management puts forth no improvement plan for the company's fortunes.

The company invests nothing in itself as evidenced by CAPEX expenditures of $0, while all of the company's fiscal 2012 were generated through taxes. In addition, y-o-y operating cash flow fell 14% and y-o-y free cash flow fell 14%. To compensate, management allowed debt to grow by 10%. Outstanding.

What I found so incredible about this stock was that the markets have increase the one-year ago price by 20% while y-o-y sales fell 3%, y-o-y EBITDA fell 55%, and y-o-y cash on hand fell 47%, all of which point to a ship that is sinking faster than her pumps can pump.

My advice? Smash your hand in a car door, it would be a more pleasurable experience than owning this stock.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Wax Ink is a baseline equity research company not licensed or registered with any government agency.

Copyright © 2013 Wax Ink  [more]



RPM International - Slowing To A Crawl

December 30, 2013 – Comments (0) | RELATED TICKERS: RPM

RPM International, Inc. - (Reviewed 12/30/2013)
RPM International, Inc. (NYSE: RPM) – Negative Investment Interest based on a recent price of $41.12 and a fair value estimate of $22-$28.

The company and its subsidiaries manufactures, markets and sells various specialty chemical product lines, including high-quality specialty paints, protective coatings, roofing systems, sealants and adhesives.

There is no reason to own this stock at current pricing levels. With y-o-y debt growth of 22%, y-o-y free cash flow growth of (-3%), and y-o-y earnings growth of (-15%) there is currently more downside risk to ownership than upside reward.  [more]



Performance - Week Ending 12/27/2013

December 28, 2013 – Comments (0) | RELATED TICKERS: LAYN , ARCB , SCX

The markets have had a remarkable run in 2013, thanks mainly to the Fed attempting to “fix” the economy. Individual investors, especially those new to managing their own money, should be aware, that 25%+ indices gains are not overly common.  [more]



Performance - Week Ending 12/20/13

December 22, 2013 – Comments (0) | RELATED TICKERS: MYE , HFC , CBST.DL

Before I get started, I would just like to remind everyone that I am neither a Democrat nor a Republican. I am simply an American that wants what is best for my country and her citizens.  [more]



Performance - Week Ending 12/13/2013

December 15, 2013 – Comments (1) | RELATED TICKERS: DORM , SCX , FSTR

China has landed on the moon. I can only imagine what the U.S. intelligence (oxymoron) community is doing to prevent what must surely be the coming Armageddon?  [more]



Performance - Week Ending 12/06/2013

December 07, 2013 – Comments (2) | RELATED TICKERS: VVI , PAYX , AVX

The crap is about to hit the proverbial fan, laying bare one of the intangibles of investing, the gut feeling.

The markets were generally unchanged last week, thanx to an “encouraging” employment report. But how encouraging can an unemployment report be, when the change in the unemployment number also shows an increase in the number of the long-term unemployed?  [more]



Performance - Week Ending 11/29/2013

December 01, 2013 – Comments (0) | RELATED TICKERS: MCS , GHM , GSM

 It was Thanksgiving the other day, a time for family and friends to gather together and give thanx. In my case, as it always is, it was an opportunity to give thanx for the people that are, and have been, in my life.  [more]

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