The stock closed at $3/4 today. I picked up some shares a couple of months ago
at $1. The 52 week hight on this stock is $7.31. The last 10Q on this company
reflected an increase in sales to $143 million vs. $102 which is a 40% increase
in revenues for the 9 mo.'s ending Sept. 29. However, SG&A also increased by
$5.4 million plus a restructuring charge of $2 million.
The restructuring charge was result of Cerplex closing a couple of branch offices
which should lower SG&A over the next year.
Cerplex was having some debt problems, however, they were able restructure this
debt as is described in the following partial press release:
Dec. 10, 1996--The Cerplex Group Inc. (NASDAQ:CPLX), a leading provider of high technology
outsourcing services, on Tuesday announced that it has successfully
completed negotiations of amendments to its senior credit agreements
and subordinated note agreements, which are effective Nov. 30, 1996,
retaining the previous term of the agreements through March 31, 1997,
for the senior credit agreement, and three equal installments in the
years 1999, 2000 and 2001 for the subordinated note agreements.
The company is now in compliance with all terms and conditions of
agreements related to its bank group and subordinated debt holders.
"We are pleased with the cooperation of our bank group and
subordinated note holders to conclude these negotiations and move
forward with our 1996-97 plans," stated James Eckstaedt, chief
financial officer.
With the above mentioned and the fact that outsourcing has become a
buz word for a lot of companies within the past couple of years,
I believe Cerplex is poised for a turnaround.
The annual 10-K soon to be released within the next week will tell the
story of whether I am right.
Good luck to anyone that invests in this stock. Do your research.
|
