Coleman Cable, Inc. (NASDAQ:CCIX)
The Company is a designer, developer, manufacturer and supplier of electrical wire and cable products in the United States.
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High Sales and Return on Equity
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Trendspotter
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Copperfields was sold by Spell Capital, which had serious challenges turning a profit. They are in an industry that has not seen a price increase in over 7 years due mostly to foreign price pressures, while seeing significant cost increases in salaries, healthcare, inflation, etc. 138.6M increase in sales to marry with a net income reduction from 9M to 4M doesn't bode well either. It appears to me that they are simply pushing dollars without benefit. I do not see an advantage in the near future. Remember, Copperfields bought Essex. 200M worth of sales that on paper, the company was worth 6M. Its the dog that caught the car. Now Coleman owns that dog.
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The company has been a solid company and will continue to grow in a expanding market. Their only mistake last quarter was inexperiance with expressing themselves to the market. They have hired an PR Firm to do that for them and I expect to hear a big pop tomorrow.
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P/E Ratio of 4.0 for a company that has such large growth potential?
---I don't think so... watch this one blast off very soon.
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on the magic formula list; no debt; high return on equity;
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Coleman Cable Co. I call it the bag of cash,because I have received bags of cash off of playing it,and so have some big investment firms.
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prefered company by its customers. will give nice returns$$$
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This company has grown well over the past 4 years. The current decrease in profit-margins are laregely due to a recent acquisition. Not sure just how solid the company is, but I don't think it deserves a P/E ratio as low as 3.98.
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Way too over sold and just made the Russell 2000
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Revenues growing, business expanding, and a big miss on earnings seem to present a value opportunity.
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no reason to fall 40%.. Bad presentation on q2 reporting.. Will bounce back... No brainer!
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This stock tumbled today not because of the performance of the company but because of a pathetically presented second-quarter report/conference. The management of this company may be good business men, but they don't understand the role of a public company in company-investor relationship. Terribly confusing reporting event.
First, the Q2 results did not appear on the news headlines anywhere on the Internet. In fact, it did not even appear on the company's website. The only way to find it is to dig deep in the SEC library. Most people rely on headlines. Some more diligent ones might search the web including the company's website, but the majority would not go lengths to search the SEC library.
Second, because of inadequate presentation and explanations, most of the investment community heard only one thing: "the quarterly income has decreased to one third of the Q2 2006." But what has not been explained is that the company has a record high EBITDA of $21 million in Q2 2007, as compared to the quarterly average of $13.5 million in year 2006, and the $8.7 million in Q1 2007. It is true that the net income is only a fraction of the Q2 2006, but it is almost 40% higher than last quarter (Q1 2007), and most importantly the YoY decrease is caused by:
(1) a singularly high interest expense of $8.1 million (which is twice as a typical quarter);
(2) $2.4 million of income tax expense in Q2 alone, which is nearly the total income tax expense of the entire 2006;
(3) an extremely high depreciation and amortization expense of $6.4 million (versus a typical and average $1.4 million per quarter in 2006); and
(4) a one-time inventory set up expense of $2.7 million (apparently related to the acquisition of Copperfield).
If you reduce the above (1), (2) and (3) to average 2006 numbers, and excluding (4), you would have a net income of a record $18 million in Q2 2007 (almost half of the entire year of 2006).
Also, if you look at Q4 2006 and Q1 2007, the last quarter (Q2 2007) is a very good one showing significant improvement. If the stock was worth $20 on August 14, do you really believe it is worth only $11 the next day? If the investment community comes back to its senses (or the company realizes that it has terribly confused the investment community and comes up with a better explanation and presentation), this will go back to the $20 level in no time. In fact, if the Q3 2007 results show a performance similar to Q2 2007 but with normal expenses, this stock is going to move beyond $20.
By the way, if you listened to the telephone conference, you would have noticed how frustrated the callers were. Particularly, note that one of the callers admonished the senior managers with very very serious criticisms against their dreadful report and conference.
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Looking for 35.00 to 40.00
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great chart go with it
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GOOD TIME FOR RUN - COPPER
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