Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (62235)	7/25/2019 3:51:00 PM
From: bruwin	Read Replies (1) \| Respond to of 78464

Now and again, when I read of a stock that's being commented on, the first place I go to is that company's Income Statement to see the latest Financial performance of that company and how that could likely tie in with the "Market's" assessment of that stock in terms of its price performance .... So, in that regard I tend to target 5 items in that Statement, viz. Revenue, EBITDA, Pretax Income, Interest Expense and Net Income. ..... In UAN's last 5 Quarterlies .... OPERATING REVENUE :- So, so .... no ongoing regular increase, kind of up-and-down EBITDA :- A good percentage ratio to Revenue, i.e. 26/90 = ~29% of Revenue left over after deduction of the "compulsory expenses" of CoS, SG&A and R&D. INTEREST EXPENSE :- Very high relative to EBITDA, i.e. 15.7/26 = ~60% of the left over Revenue going to service its Debt. Not good IMO. PRETAX INCOME:- Company is already losing money. NET INCOME:- Company has been losing money for the last 5 Quarters, which, in turn, is having a Negative Effect on its Balance Sheet. The only positive is that the Quarterly loss could be showing signs of declining. However, no sign yet of declining Interest (Debt) Expense. And when one interrogates what the "Market" thinks of the company :- The Market appears to be undecided as the stock trades sideways between a band of ~$3 and ~$4. Which, I'd say, is in line with its financial performance. Once it trades above, say, $4.50 to $5 then that could be a sign that things are improving. My guess is that this "Market indecision" could be related to the company's high relative Debt Expense which is sucking left over Revenue out of the company. Seems to me that's where this company's management needs to focus their attention .......

To: Elroy who wrote (62235)	11/18/2019 12:21:00 PM
From: E_K_S	Read Replies (2) \| Respond to of 78464

Added 10% to my UAN position at $2.71/share. This is at a multi year low reflecting weak fertilizer prices. Company seems like they always have Capx spending upgrading facilities (which show as one time charges) that result in losses. Long term am positive on the company w/ recent merger (2 years ago) so they now have diversified production using two different types of inputs. They sell a commodity and as a result low UAN prices limit profits. Industry/Sector s/d turn around w/ Spring planting season. EKS