NGA

[David Randolph]

David, any idea around which date earnings will be announced?

Q1 earnings were already released, in April 30, 2007. If you're talking about Q2, I would say earnings will be published around August 15.

[Se7en]

I'm sorry, wrong thread, this was meant to be for the GOAM thread! 

[David Randolph]

Yesterday's high was $15.95, so $17.25 doesn't seem all that far away now, does it? NGA ended up 5.9% yesterday on another strong volume day of 1.07 million shares traded. I'll keep the plan of taking profits around $17.25 if I get the chance, otherwise I'll keep holding the stock.

[AussieTrader]

Hey guys long time no speak 

North American Galvanizing & Coatings Announces a 3 for 2 Stock Split Effected Through a 50 Percent Stock DividendLast update: 5/15/2007 9:04:00 AMTULSA, Okla., May 15, 2007 /PRNewswire-FirstCall via COMTEX/

-- North American Galvanizing & Coatings, Inc. (NGA), a provider of hot-dip galvanizing and coatings services, announced today at its annual shareholders meeting, that on May 14, 2007 its Board of Directors declared a 3 for 2 stock split of its common stock in the form of a 50% stock dividend. The stock dividend is payable on June 8, 2007 to shareholders of record as of May 25, 2007, with a broker's cut-off date of June 1, 2007. The stock dividend entitles each shareholder of record as of May 25, 2007 to receive one share of common stock for each two shares then owned. Any fractional shares resulting from the stock split will be paid in cash based on the closing market price of the common stock on the record date. Mr. Ronald J. Evans, President and Chief Operating Officer of North American Galvanizing & Coatings, Inc., said, "This 3 for 2 stock split reflects our confidence in the long-term prospects of the Company. The stock split should allow our stock to be more accessible to a broader range of investors and to improve shareholder liquidity."

[David Randolph]

Hey guys long time no speak

True, I sometimes see you reading, but you're not writing lately. I hope everything is well with you my friend, someday I'll visit you at Perth, someday ...

• North American Galvanizing & Coatings Announces a 3 for 2 Stock Split Effected Through a 50 Percent Stock Dividend
PR Newswire (Tue 9:04am)

This 2 for 3 stock split doesn't change the company's value at all, but it will perhaps give it an additional boost to kiss my $17.25 short term target and selling point (the word "dividend" always attracts a lot of naive buyers). We'll see.

Nice to see you Aussie

[Garoh]

David thanks for your fast reply on thesenews .
first when I saw the news and the stock strarted to retreat at the open I thought it will be bad news and that means increase in outstanding shares # just like dilution 


you made it clear

[ygtrdr]

Thanks for the great pick David.

[David Randolph]

David thanks for your fast reply on thesenews .
first when I saw the news and the stock strarted to retreat at the open I thought it will be bad news and that means increase in outstanding shares # just like dilution 

you made it clear

No, a stock split doesn't mean dilution. In this case after the ex-dividend date the stock price will go down by about 33.33% and we'll receive 1 share for each two held. The company isn't selling new shares, it is giving them, to improve liquidity.

As far as I'm concerned this thing wasn't needed ... but it is really irrelevant.

Thanks for the great pick David.

You're welcome ygtrdr

The stock has been all over the map today, perhaps it is time for a pullback now. But I'll keep holding anyway, since $17.25 is my target, as I've explained previously (I'll probably have to change it due to the effect of the stock split if I hold the stock through it)

[David Randolph]

NGA down 8% today ... the idea of a stock split and the higher open dampened short term bullish momentum. Why split a $15 stock? Why not split it at $60, or $120, for example?

Anyway, it doesn't change anything from a fundamental standpoint, but it will probably take a bit longer for the stock to be trading at 15 times 2007 estimated earnings. What a shot in the foot from management. 

[David Randolph]

As we've seen previously, the stock split news ...

• North American Galvanizing & Coatings Announces a 3 for 2 Stock Split Effected Through a 50 Percent Stock Dividend
PR Newswire (Tue 9:04am)

... is a non event.

Now, the following comparison is of most interest:



I my view a company with this kind of fundamental improvement (revenue growth of 52% and net income growth of 138%) can't trade at 12.5 times conservatively estimated forward earnings. I say that at least 15 times $1.15 2007 estimated EPS is warranted and that means $17.25 price per share. That's where I plan to take profits.

[David Randolph]

NGA still has wind on its wings. To be a shareholder of record in May 25 th and get one share for each two owned, I need to hold this stock at May 22, which is next Tuesday. But I'm not interested in the stock dividend, I believe the stock will fall more than 33% after the ex-dividend date, perhaps not in the first day, but over the next few weeks.

So, I'm changing my trading plan slightly:

1) Take profits around $17.25, that is, 10.4% higher than yesterday's close, or else,
2) Sell on Monday.

[wxmang]

Stocks seem to perform pretty darn well when they get on this list:
That is my observation and opinion of course.

IBD's Top 200 Composite Stocks (5/17/07)

Thursday News-stand Edition

Stock: NGA
Rating: #3(unchanged by split announcement)
Composite Rating: 99
EPS: 99
RS: 99
Acc/Dis: A+

[BigSully1]

Stocks seem to perform pretty darn well when they get on this list:
That is my observation and opinion of course.

IBD's Top 200 Composite Stocks (5/17/07)

Thursday News-stand Edition

Stock: NGA
Rating: #3(unchanged by split announcement)
Composite Rating: 99
EPS: 99


RS: 99
Acc/Dis: A+

I thought IBD might soon begin touting it. I think I'm going to continue holding mine.

[David Randolph]

I thought IBD might soon begin touting it. I think I'm going to continue holding mine.

It would be nice if IBD could pump NGA to my target before the ex-dividend date. The stock still has two days to rise 14%, not impossible.

NGA published the following press release yesterday:

• North American Galvanizing & Coatings, Inc. Louisville Facility Earns Two 'Safety Awards'
PR Newswire (Thu 5:41pm)

Although the news doesn't have financial impact, it may help to give some more publicity to the stock, which undoubtedly is worth more than the current price.

I'll keep my trading plan:

1) Take profits around $17.25, or else,
2) Sell on Monday.

[realcoolhead]

David, the ex-dividend date is Wednesday 23rd, shouldn't you hold until next Tuesday?

Wait a minute, I remember last year on IBCX board, here it is: http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_003997.pdf

essentially it says that the ex-dividend date for a stock dividend that is 25% or more always falls on the next business date after payable date. Which means we won't see NGA traded 2/3 on May 23rd...