SIMC.PK

[andicito]

Snowcat, errrrrrrr, whoever elase  you are. I have no idea, do you?

[rurouni]

Snowcat, errrrrrrr, whoever elase  you are. I have no idea, do you?

Regardless of what the chairman said, the market still rules.  If there is no buyers then the stock doesn't mean very much.  If you read the link I gave you, the more experienced members did not like the fact that:

1.) It doesn't have enough trade volume which is very important.
2.) As you said......(Insiders own 75% of the company), low float

[snowcat]

I sent an e-mail to the CEO asking about earnings.

http://www.simclar.com/welcome.htm

I like a profitable co. with a low float.  That is what is going to make this stock move. Today the stock is up 6% on 6xadv.  The BV is $2.27 - more than 50% of the price. 

Some of the more "experienced" members have been trading low float sub penny stocks where the 3sof people were the only players.  SIMC is a blue chip compared to them.

[snowcat]

rcvd 11/11

Hello Snowcat,



Our earnings release will not be until the end of next week. Our offices were closed for a week due to Hurricane Wilma and therefore we need the extra time in order to complete the Form 10-Q.



Steven

[snowcat]

 Filed a NT 10-Q on Friday postponing their qtrly filing for no more than 5 days due to hurricane damage. Word seems to be a Friday filing. Certain info regarding notable changes in income and/or rev were included in this filing. This was posted on the Yahoo board.

"Yesterday's filing give important insights about the significant and fast improvement in the performance of the SNAI acquisition since the announcement was made a few months ago:

1) SNAI's revenues have increased significantly from the $5.48M reported in 2005 to the $7.2M annualized run rate per the filing ($1.78M in 3Q).

2) SNAI is losing about $30K/month after taxes compared to the $76K/mo reported in the acquisition on 40% less revenues!!!

To understand the significance of yesterday's filing, you have to understand what the company said in the announcement of the SNAI acquisition."


This is what SIMC said about the aquisition a few months ago:

...."On May 19, 2005, Simclar, Inc. (the "Company") purchased from Simclar Group Limited ("Simclar Group"), the owner of 73.4% of the Company's outstanding common stock, all of the outstanding common shares of Simclar (North America), Inc. ("SNAI"), a North Carolina corporation. SNAI is a comprehensive fabricator of sheet metal components and higher level assemblies that operates a 95,000 square foot manufacturing and assembly facility in Winterville, North Carolina. SNAI recorded a net operating loss in 2004 of approximately $811,000 on sales of approximately $5,476,000 (unaudited)....."


This is what the filing says:

(3) Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof?

[X] Yes [ ] No
Explanation of Anticipated Change:

The Registrant expects that the inclusion of the results of operations of Simclar (North America), Inc. (SNAI), which was acquired by the Registrant effective May 1, 2005, will have the effect of increasing the Registrant's sales by approximately $1,780,000 and reducing income before income taxes by approximately $181,000, in comparison to the three months ended September 30,
2004. SNAI's pretax loss for the quarter is due primarily to the seasonality of sales to a single customer


It is obvious from the figures reported in the


This means that 3Q revenues for SIMC as a whole could easily exceed $16M if we add $1.8M from SNAI and $1M from the new Matamoros plant to 3Q 2004 revenue of $13.2M. That's a 20%+ increase in revenues.

Since the SNAI contribution to net income (after taxes) is about $90K or 2c/share, SIMC might still report a net income in the 6c to 10c/share range with the improvemets that the Chairman noted that were implemented in two plants this quarter. You couple that with record revenues of over $16M and we fly to the moon IMO.

Yesterday's knee-jerk reaction was the fear of the unknown and the lack of understanding of what the filing was saying. "

[snowcat]

Earnings blow - I guess this stock was all pump after all. 

Down 15% on 10X adv

Lesson learned: do not buy low volume stocks and if it is pumped too much, ignore it.

Simclar, Inc. Announces Third Quarter Profits
Friday November 18, 10:07 am ET


HIALEAH, Fla.--(BUSINESS WIRE)--Nov. 18, 2005--Simclar, Inc. (NASDAQ:SIMC - News), a multi-plant electronics contract manufacturer reported its results for the quarter ended September 30, 2005.
ADVERTISEMENT


Revenue for the third quarter of 2005 was $16,592,000, an increase of 25.4% from $13,233,000 in the third quarter of 2004. Excluding the acquisition of Simclar (North America), Inc. ("Simclar NA"), which was effective May 1, 2005, revenue for the third quarter of 2005 would have been $14,911,000, up 11.9% from the third quarter of 2004.

Net income for the quarter was $242,000 ($.04 per share) versus $486,000 ($.08 per share) in the third quarter of 2004. Excluding the acquisition of Simclar NA, net income would have been $353,000 ($0.05 per share) for the quarter.

Simclar Chairman Sam Russell commented: "The sales trend in the quarter is encouraging, with an increase of 11.9% over the third quarter of 2004, excluding the impact of the acquisition of Simclar NA, with several new contracts benefiting the top line. However, there is still room for improvement in profitability. Increased material costs have impacted gross margin compared to 2004, as well as increased use of temporary labor to facilitate the ramp-up on new contracts. Management expects efficiencies to improve as these new contracts continue and the level of temporary employees to decrease accordingly. In addition, the results of Simclar NA have been disappointing to date, and this is primarily due to order push-outs from one of its major customers. Management expects this facility to return to profitability in 2006. The other significant factor affecting net income is the increase in interest expense from 2004 due to increased borrowing in order to fund the expansion in Mexico, as well as higher interest rates.

Although the third quarter net income was disappointing, we continued to expand our customer base and product offerings and will work on increasing efficiencies on the new products. Management still believes that the outlook for the company is good and we expect that sales and profitability for the second half of the year as a whole will increase over the first half of the year, and look forward to strong sales and income growth over 2005 levels in 2006."

Simclar, Inc., with six North American manufacturing locations, has been engaged in contract manufacturing of electronic and electro-mechanical products for OEMs for 29 years.

[terabemo]

SIMC REPORTED RECORD 1Q EARNINGS RESULTS TODAY....COMPANY SEES ACCELERATED AND STEADY GROWTH GOING FORWARD.

******** 12-MONTH TARGET: $15 - $20 *********

---- ONLY 1.7M SHARES IN THE FLOAT ----


+++++ 1Q 2006 EARNINGS HIGHLIGHTS +++++


*** 1Q 2006 REVENUES: $21.9M up 78% FROM $12.4M IN 1Q 2005!!!!!!

*** 1Q 2006 NET INCOME: 11C vs. 5C/SHARE IN 1Q 2005!!!!


EARNINGS DETAILS HERE:

http://biz.yahoo.com/bw/060515/20060515005932.html?.v=1


Today's report is not a one-time anomaly...it is instead a steady trend in revenue and net income growth that has accelerated in recent quarters.

http://finance.yahoo.com/q/is?s=SIMC


+++++SIMC INVESTMENT HIGHLIGHTS:

* FLOAT: 1.7 Million Shares
* Profitable in 10 of 11 years (2001 was the exception)
* 2005 EPS=$0.19
* 2006 EPS between 40 and 60c/share (my estimate)
* 2005 Revenues = Record $61.2M
* 2006 Revenues = Record $80M - $100M (my estimate)
* Market Cap only $36 million
* P/S = 0.6
* Insiders own 75% of the company.

Simclar Chairman, Sam Russell, commented: "I am very pleased with the continued improvements in performance we started to see in the fourth quarter of 2005. Our commitment to grow organically and through strategic acquisitions is generating excellent results in sales and profitability. The recent addition of Simclar Interconnect Technologies has been well received by our customers and we anticipate significant opportunities from the added production capabilities. We are now able to provide our OEM customers with a one-stop shop for metal fabrication, cabling solutions, printed circuit board assemblies, advanced backplane interconnect solutions and higher level assemblies."

Litton Interconnect has a reputation as a world-leading supplier of high-performance backplane interconnect solutions to major blue-chip customers in markets as diverse as network, wireline and wireless infrastructure, defense and electronic data processing. Backplane interconnect systems form the core of high-end electronic systems and provide the means for power distribution and data communications between electronic sub-system building blocks. Adding the ability to provide backplane interconnect solutions with SIMC's metal fabrication, cable and harness, printed circuit board, and high level assembly capabilities enables Simclar to offer a highly appealing single-source solution to the electronics OEM market.

SIMC has acquired Litton Interconnect with cash thus avoiding dilution. SIMC has acquired several manufacturing facilities in recent years with cash.

All the markets that SIMC serves are hot, and are expected to remain hot for the foreseeable future....Telecommunications, Power Equipment, Instrumentation, Data Processing, Food Preparation, and Defense.


About SIMC:

Simclar, Inc. (Nasdaq: SIMC) is a contract manufacturer of electronic and electro-mechanical products. SIMC operates over a dozen manufacturing plants in the US, China, Mexico, and Scottland.

[terabemo]

It is getting harder to get shares now. It always happens before earnings...specially when earnings are expected to be good.

[Lucas Scott]

It is getting harder to get shares now. It always happens before earnings...specially when earnings are expected to be good.

Why is it harder to get shares? Just use a market order if you really want in.

[terabemo]

I ended up doing that. Thank you for the suggestion. I always use limit orders.

Tomorrow will be interesting ...radart it. The company usually issues Financial results during the trading hours and not in the PM or AH like most.

[terabemo]

SIMC is looking strong going into earnings....UP & UP!!!!

Hmmmm...such little volume makes this puppy jump like that. A strong earnings report could generate trading in the millions like it di in April 2005 when it jumped to $8.

This time, however, SIMC is stronger than ever and well positioned to grow into new areas with Litton

[terabemo]

Keep an eye on SIMC tomorrow. Earnings are expected to be good....

[Charger]

This is one company I always make money with before earnings...unfortunately never after earnings.  The earnings run up is always predictable and i have learned to sell regardless of how good earnings are "supposed" to be.  GLTA in this.

[shriep]

damn why didnt i jump in on this in the morning.  i didnt know they would announce earnings mid day.  where can i find out when companies will announce there earnings, usually i go to yahoo and it says before the bell, or after the bell. i had no idea simc would accounce at noon like that. oh well, any other companies with good earnings expected this week?

[snowcat]

Great call Terabemo!  You hit a home run!  Keep 'em coming

Up 30% on a miserable day!

http://finance.yahoo.com/q?s=simc