First good idea

[PRE]

They missed guidance but stock is up 5.6% AHT. I don't have time to read earnings report but I'm guessing raised 07FY estimates.

[Scorpion Man]

Just to clear up the facts here
1) did not miss "guidance" (they don't guide). Did miss concensus (i had a feeling that was coming given the last discussion with them I alluded to.

2) After hours print was bogus...I don't ascribe any meaning to it. I think the stock probably (who knows) starts down tomorrow. Conference call at 11am EST will be important.

3) As I said before, I am still feel good here long term, but the junk bond mkt imploding was a real short term negative (i think people bot the stock for that catalyst) and Q2 had some combo of weather issues and street "modelling" issues. The company does NOT guide at all, and will not in the future. This can lead to confusion on a highly seasonal, newly public company.

3) Gross margins were quite good and this is the most important part of the story.

4) I am very curious to see how Q3 is shaping up...street had modelled Q2 and Q3 as pretty flat sequentially. I am thinking it will be up...but I am not sure.

I should have my head examined for posting ideas here...but oh well. FWIW, I have not sold a share and think that the real test here is where the stock is in 18 mos.


My apologies to anyone who is down on this.

[Groty]

[ QUOTE ]
EW YORK - Standard & Poor's Ratings Services withdrew its ratings on Wednesday for two credit facilities postponed by Dayton Superior Corp., which makes concrete construction products and forming and shoring equipment.

The ratings service said Dayton delayed the planned refinancing due to market conditions.

Dayton shares dropped 50 cents, or 4 percent, to $11.90 in afternoon trading. The stock has traded between $9.90 and $14.49 since the Dayton, Ohio-based company's initial public offering in December.

Standard & Poor's had assigned a "B" rating and "4" recovery rating to the proposed $195 million senior secured first-lien credit facility. It had issued a "CCC+" rating and "6" recovery rating for the proposed $85 million second-lien facility.

As a result of the withdrawal, Dayton's 10.75 percent senior second secured notes due 2008, 13 percent senior subordinated notes due 2009 and $130 million revolving credit facility will remain in place.
Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

[/ QUOTE ]

I wonder if they are thinking about offering more equity to the public and use the proceeds to reduce debt levels to more comfortable levels. That way, the equity sponsors could piggyback on the registration statement and get more liquidity.

If that was the plan, the funk in the high yield market puts it in jeopardy until things settle down.

[Shoe]

Do you still feel as strongly about this company today as you did when you first started purchasing shares?

[craigthedeac]

[ QUOTE ]
I should have my head examined for posting ideas here...but oh well. FWIW, I have not sold a share and think that the real test here is where the stock is in 18 mos.


My apologies to anyone who is down on this.

[/ QUOTE ]
I think I speak for everyone when I say thanks for your contributions to the forum. I hope you aren't discouraged by the bad start for DSUP and continue to post here. I, for one, find your insight to be very interesting and educational. Everyone here is responsible for their own financial decisions so don't feel any guilt for any of our losses. I'm sure everyone appreciates the tip and understands that there is volatility in the market.

Craig

[icetonez]

I listened to the conference call this morning (my first for any stock). I believe most if not all of the questions were asked by analysts currently covering the stock (Peter Lisnic, Chris Glynn, Chris Manuel that I can recall) Curiously one of them asked for guidance. I'd think they'd know better.

The refinancing was of course mentioned a few times. Questioners were worried about interest rate risk from waiting. Zimmerman, the CEO said that they were going to look again after Labor Day. From what I understand, their reasoning was sound. They want this credit mess to wash over some, as well as display more of their own strength credit wise. It made sense to me.

Dayton sounded upbeat about the third quarter. The weather makes this a favorable quarter. Varous industry reports also sounded optimistic for next year. Zimmerman said the election year would be good because politicians want to build infrastructure for their constituents.

[craigthedeac]

I listened in as well, they said they planned to have refinancing done by year-end.

[PeterPlan]

[ QUOTE ]
3) As I said before, I am still feel good here long term, but the junk bond mkt imploding was a real short term negative

[/ QUOTE ]

So since this was only a temporary fluctuation the perfect time to buy this stock is now?

[ahnuld]

would this be a good time to buy more? I figured with the bridge collapse and people talknig about america needing an infrastructure overhaul, this would have been a good week for dsup. Instead its getting killed in the lending mess.

[sylar]

my guess is that everything is getting killed in the lending mess. is it a good time to buy anything? hard to say. out of pure optimism, i expect the bottom to come in the next couple of weeks but really who knows.

i think dsup won't see much up action until some new q3 estimates or the refi deal moves forward.