$3.38 -$0.06 (0.0%)

04:00 PM EDT on 07/15/19

RADA Electronics Industries (NASDAQ:RADA)

CAPS Rating: 1 out of 5

Current Price $3.38 Mkt Cap $123.7M
Open $3.40 P/E Ratio 0.00
Prev. Close $3.38 Div. (Yield) $0.00 (0.0%)
Daily Range $3.38 - $3.43 Volume 6,382
52-Wk Range $2.53 - $3.96 Avg. Daily Vol.

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All Players

1 Outperform
17 Underperform
 

All-Star Players

0 Outperform
15 Underperform
 

Wall Street

0 Outperform
0 Underperform
 

Top NASDAQ:RADA Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

superstar (99.95)
Submitted July 07, 2017

As Jed pointed out, this is a terrible long-term investment based on the financials. However, my 'gut instinct' tells me this one may run higher over the short-term prior to the inevitable collapse. Just gave this one a green-thumb for fun on caps… More

jed71 (99.80)
Submitted July 07, 2017

There are several things going on here that I really don’t like. There is the following:“In order to obtain working capital for our operations and to repay the outstanding debt due to our then principal shareholder, we completed a follow-on public… More

NASDAQ:RADA VS S&P 500 (SPY)

NASDAQ:RADA Summary

Recent Community Commentary

Read the most recent pitches from players about RADA.

Recs

0
Member Avatar ChiefPaw (28.97) Submitted: 8/7/2018 3:17:52 AM : Underperform Start Price: $2.80 NASDAQ:RADA Score: -15.40

And now that we're on top of the super slide...

Recs

0
Member Avatar RES7 (98.25) Submitted: 7/12/2017 2:37:56 PM : Underperform Start Price: $2.13 NASDAQ:RADA Score: -35.79

jed71

Recs

4
Member Avatar jed71 (99.80) Submitted: 7/7/2017 9:17:37 AM : Underperform Start Price: $1.83 NASDAQ:RADA Score: -60.82

There are several things going on here that I really don’t like. There is the following:

“In order to obtain working capital for our operations and to repay the outstanding debt due to our then principal shareholder, we completed a follow-on public offering of 3,455,284 ordinary shares, offered at a price to the public of $2.46 per share on July 30, 2015. We then entered into an investment transaction with DBSI on May 18, 2016, according to which we sold 8,510,638 ordinary shares to DBSI for $4 million, reflecting a price per share of $0.47. We also issued to DBSI, without additional consideration, warrants to purchase 4,255,319 ordinary shares at an exercise price per share of $0.47 (or $2 million in the aggregate) exercisable for a period of 24 months and warrants to purchase 3,636,363 ordinary shares at an exercise price per share of $0.55 (or $2 million in the aggregate) exercisable for a period of 48 months. DBSI also agreed to provide our company with a three- year $3,175,000 convertible loan bearing interest of Libor plus 6%, which was funded on June 16, 2016 and was used to repay the outstanding convertible loan and accrued interest owed to an entity owned by our former principal shareholder, Mr. Howard Yeung. In November 2016, we sold 1,904,762 of our ordinary shares to The Phoenix Insurance Company Ltd. and its affiliate, Shotfut-Menayot-Israel-HaPhoenix Amitim Ltd., two Israeli institutional investors, at a price of $1.05 per share, or approximately $2 million in the aggregate. At the same time, DBSI invested an additional $1 million in our company through the exercise of 2,127,660 warrants. As of March 2017, DBSI has paid us 1.5 million to exercise warrants to purchase 3,191,490 ordinary shares. We may need additional working capital in the future to repay our debt and fund our operations. Such financing may not be available, or, if available, may not be on terms satisfactory to us. If adequate funds are not available to us, our business, and results of operations and financial condition will be adversely affected.”

Wait, wait, WAIT. The public pays $2.46 per share from the DBSI offering, and then the company turns around and sells shares back to DBSI for $0.47 about 11 months later? You have got to be kidding me. Are you curious about the price paid for the shares sold to the public by DBSI? Here you go:

“In order to repay the remaining debt subject to the Standstill Agreement, we entered into an investment transaction with a new investor, DBSI Investments Ltd., or DBSI, according to which we agreed to issue 17,021,277 ordinary shares, in consideration for the aggregate amount of approximately $4,000,000 reflecting a price per each share of $0.235, or the Initial Investment. We will also issue to DBSI, without additional consideration, warrants to purchase: (i) 8,510,638 additional ordinary shares at an exercise price per share of $0.235 (resulting in an aggregate exercise price of $2,000,000)exercisable fora period of 24months following the date of the Initial Investment; and (ii) warrants to purchase an additional 7,272,727 ordinary shares at an exercise price per share of $0.275 (resulting in an aggregate exercise price of $2,000,000) exercisable for a period of 48 months following the date of the Initial Investment.”

Revenue with this company has declined the past two years to a measly $12MM a year in 2016. They state their working capital in the 20-F filing, but there is no breakout for cash balances that I can find. I suspect their cash is always quite low given they seem to sell new shares at a rather rapid pace. One more copy and paste:

“During the year ended December 31, 2016, the aggregate compensation paid to all of our executive officers and directors as a group was approximately $ 1,061,973. As of December 31, 2016, the aggregate amount set aside or accrued for pension, retirement, recreation payments and vacation or similar benefits for our directors and executive officers was approximately $282,128.”

I appreciate that people want to be compensated for their work, but this is an insane amount of money for a company that produces very low (and declining) revenues with little hope of growing that revenue stream. Couple this with their other fixed expenses, and I don’t see how they ever get to break even. No idea why a U.S. investor would ever risk money in this little stub. I think this is a very simple down thumb decision.

Leaderboard

Find the members with the highest scoring picks in RADA.

Score Leader

demeye

demeye (98.56) Score: +50.33

The Score Leader is the player with the highest score across all their picks in RADA.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
tsperbeck 99.60 11/3/2017 Underperform 5Y $3.32 +1.70% +16.35% +14.65 0 Comment
FoolTheRest 99.96 8/24/2017 Underperform 5Y $3.05 +10.82% +22.94% +12.12 0 Comment
slnoutperform < 20 6/7/2019 Outperform 5Y $3.34 +1.20% +5.08% -3.88 0 Comment
kdakota630 29.73 9/20/2018 Underperform 3M $3.12 +8.33% +2.47% -5.86 0 Comment
ChiefPaw 28.97 8/7/2018 Underperform 5Y $2.80 +20.71% +5.32% -15.40 1 Comment
RES7 98.25 7/12/2017 Underperform 5Y $2.13 +58.94% +23.15% -35.79 1 Comment
Fox660Player 99.93 2/8/2018 Underperform 5Y $2.05 +64.88% +14.32% -50.56 0 Comment
rancidlettuce 98.64 2/23/2018 Underperform 5Y $2.04 +65.69% +9.43% -56.25 0 Comment
jackhmr 99.98 7/3/2017 Underperform 5Y $1.83 +84.80% +24.09% -60.71 0 Comment
redfox18 99.92 7/5/2017 Underperform 5Y $1.83 +84.70% +23.91% -60.79 0 Comment

Wall Street

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