Thursday, August 31, 2017

Titan Machinery Reverses FY2018 Guidance From Profit to ($-0.35) Loss

HOLY COW!
NO SUPRISE HERE!

Titan Machinery today lowered FY2018 guidance which CONFIRMED that its Q1 Conference Call in May was another PUMP AND DUMP.
Just 90 days ago when Titan reported another huge  quarterly miss (loss) the stock was hammered in premarket only to have the Chairman go on the morning conference call at the market open to PROCLAIM that the company although had Q1 losses would BE PROFITABLE in FY2018.
The stock IMMEDIATELY RALLIED and shot up 30% off its morning low!
Within 24 hours the stock SOARED and sure enough the CHAIRMAN DUMPED HIS STOCK.
   


This morning the Chairman said in the Q2 press release that the Company WILL NOT BE PROFITABLE in FY2018 but instead would LOSE (-$0.35) a share in FY2018!

TITAN MACHINERY HAS BEEN PUMPING AND DUMPING STOCK FOR YEARS but the SECURITIES AND EXCHANGE COMMISSION continues to just looks the other way.

This post will be updated later today after the conference call as the company failed to disclose REVENUES in their morning press release regarding their NEW DISTRIBUTION channel with an entity outside of the AGRICULTURE/Construction Space

SALES DECLINED IN Q2 across every channel:
AGRICULTURE, CONSTRUCTION, RENTAL, SERVICE.

Follow the BELOW LINKS TO SEE HISTORY OF PUMP AND DUMP:
Earlier this year a SEEKING ALPHA author wrote an article saying Titan Machinery hasn't done anything Criminal to make stock go into the pink sheets. HERE IS MY REBUTTAL illustrating all the GAMES.

My rebuttal with links can be found below:



Thanks for the mention.
You mention that you didn't you see anything that the company has done that is criminal so you don't see the company blowing up.
I think it would take a criminal investigator to make that decision.
For instance , has any agency ever investigated the suspicious trading in the stock prior to the 8K filing when the auditor suddenly resigned? http://tinyurl.com/kkc...
Have you or any agency ever investigated the suspicious trading in the stock on the session prior to the company issuing a press release that the company announced they were abruptly closing stores?
Has any agency ever investigated the lack of "related party transactions" disclosure regarding the construction company that has done the work building out locations. http://tinyurl.com/mya...
In the quarter that the company inflated their assets and under reported losses by 50%, has any agency ever investigated that disclosure? http://tinyurl.com/k9x...
Has any agency investigated the HYPE EPS estimates made by the Penny Stock Firm located in Minnesota (FELTL) saying the company would earn $0.37, only to see the company report a loss of over a ($1.00) 6 months later? http://tinyurl.com/ke4...
Has any agency investigated who is running Dealer Sites? You mention Dealer Sites had those lease agreements with Titan prior to going public but the percentage ownership of 30% is incorrect. It was nearly 100%. Are you aware that in 2013 they increased the lease agreement from $50 million to over $100 million?
Does anyone know how many of the stores that still remain are on properties owned by Dealer Sites? Have any of the stores that closed on property owned by Dealer Sites?
Was there anything wrong When the Chairman hyped up his stock when he was featured on CNBC Mad Money with Jim Cramer and then 30 days later he and the CEO sold 500,000 shares @ $28 (note there are only 21 million shares out).
More notes on Selling into Hype here .. http://tinyurl.com/kk4...
I am not sure if any of these activities are criminal, I'm just not as confident as you that they are not.
I can dig up more notes later to post here.
As far as risk reward in owning shares here at the $15 level, what are your thoughts?
The company this month said they were closing 15 USA stores by July 31st (almost 20% of USA locations) and gave guidance that sales will decline in FY2018 and they company would not be profitable again for the 4th consecutive year.
If they were to earn $0.05 a share in FY2019 , do you think the company deserves a Price Earnings Multiple of 300 based on FY2019 earnings estimates?
You mention that the company has available Credit of $500 Million, but that is not really true because the covenants of their Loan agreements won't permit them to exceed their current ratios.
Although you correctly note that the company "had" $52 million on Jan 31,2017, that number has declined after they paid out $15 million to WFC since that date.
There's so so much more for me to comment about this company but I have to go somewhere this morning.





Friday, August 25, 2017

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Tom Renna began his professional career on Wall Street 28 years ago after graduating Rutgers University. In 2005 Tom founded Equities Research LLC, a small boutique investment research firm where he provides market research analysis and consulting services to both Issuers (private and public) and Wall Street professionals. Tom's experience as an investment banker, financial advisor, institutional equity broker, bond broker, entrepreneur and director of a public company gives him the unique ability to see all sides of Wall Street. Tom provides invaluable insight to both issuers and investors, from the novice to top Wall Street executives.  In 1997 Tom was an original owner of Newsgrade Corporation, a private online publishing company that annually generated millions of timely and actionable automated unique stories that were streaming on Bloomberg Terminals for institutional investors. By 2003 Tom had become Managing Director of National Sales for Stockdiagnostics.com, a subsidiary of Newsgrade that he helped to create. Tom has made some of the top long and short calls over the last 25 years on Wall Street and his work has been mentioned on CNBC TV among other financial news sources. 
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Since graduating Rutgers University (B.A.) in 1990, Tom has worked in the financial industry in various capacities. 

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