The Investment Thread (19 Viewers)

[bclemms]

Watching the Asian markets open in about 16 hours is going to be quite interesting.

Since the Asian markets closed on Friday China escalated the trade war, Trump retaliated with his own increase in tariffs. At the G7 Summit apparently there were global leaders threatening each other with tariffs (nobody has said who), Hong Kong protests have gotten intense again, Trump tells US businesses he is ordering them out of China and after initial responses saying he doesn't have the power we are now learning he actually does. US markets went down about 3%, Gold spiked up and yield curve inverted again.

Anyone want to guess what percent gain/loss on the day will be? I think China's stock market sees double digit losses. Fed better have a speech and plan together Monday morning if Asia markets carry over to Europe and back to US. I'm really not sure how much more China can do to prop up it's own economy either, the stimulus tool chest is running on E.

 

[Saint_Ward]

The first bit talks about the market and the Fed.

 

[bclemms]

NUGT going crazy today. Gold too. Havent been able to figure out why, airport hopping today. May just be momentum pushing it.

 

[Saint_Ward]

This doesn't surprise me anymore. It's like they copy and paste this headline.

HEICO Corporation Reports Record Operating Income and Net Sales for the Third Quarter of Fiscal 2019 and Record Net Income for the Nine Months; Full Fiscal Year 2019 Net Sales, Net Income and Cash Flow Growth Estimates Raised

HEICO CORPORATION (NYSE: HEI.A) (NYSE: HEI) today reported that net income increased 21% to $81.1 million, or 59 cents per diluted share, in the third

www.businesswire.com

HEICO Corporation Reports Record Operating Income and Net Sales for the Third Quarter of Fiscal 2019 and Record Net Income for the Nine Months; Full Fiscal Year 2019 Net Sales, Net Income and Cash Flow Growth Estimates Raised

HOLLYWOOD, Fla. & MIAMI--(BUSINESS WIRE)--HEICO CORPORATION (NYSE: HEI.A) (NYSE: HEI) today reported that net income increased 21% to $81.1 million, or 59 cents per diluted share, in the third quarter of fiscal 2019, up from $67.1 million, or 49 cents per diluted share, in the third quarter of fiscal 2018. In the first nine months of fiscal 2019, net income increased 26% to a record $242.2 million, or $1.76 per diluted share, up from $191.9 million, or $1.40 per diluted share, in the first nine months of fiscal 2018

Operating income increased 18% to a record $119.4 million in the third quarter of fiscal 2019, up from $101.4 million in the third quarter of fiscal 2018. In the first nine months of fiscal 2019, operating income increased 23% to a record $336.5 million, up from $272.5 million in the first nine months of fiscal 2018.

The Company's consolidated operating margin improved to 22.4% in the third quarter of fiscal 2019, up from 21.8% in the third quarter of fiscal 2018. The Company's consolidated operating margin improved to 22.2% in the first nine months of fiscal 2019, up from 21.0% in the first nine months of fiscal 2018.

Net sales increased 14% to a record $532.3 million in the third quarter of fiscal 2019, up from $465.8 million in the third quarter of fiscal 2018. Net sales increased 16% to a record $1,514.1 million in the first nine months of fiscal 2019, up from $1,300.8 million in the first nine months of fiscal 2018.

Up just over 4% in after hours trading.

 

[Saint_Ward]

NUGT going crazy today. Gold too. Havent been able to figure out why, airport hopping today. May just be momentum pushing it.

RING finally went green for me. IAU has been up a bit.

Think you’re seeing the computer algorithms trying to make sense of this China stuff.

 

[Saint_Ward]

This doesn't surprise me anymore. It's like they copy and paste this headline.

HEICO Corporation Reports Record Operating Income and Net Sales for the Third Quarter of Fiscal 2019 and Record Net Income for the Nine Months; Full Fiscal Year 2019 Net Sales, Net Income and Cash Flow Growth Estimates Raised

HEICO CORPORATION (NYSE: HEI.A) (NYSE: HEI) today reported that net income increased 21% to $81.1 million, or 59 cents per diluted share, in the third

www.businesswire.com

Up just over 4% in after hours trading.

yuck, so much for that.. down almost 7% today. People must be taking profits. All guidance was up from what I read. The conference call today will be interesting.

 

[NewOrleansFan]

yuck, so much for that.. down almost 7% today. People must be taking profits. All guidance was up from what I read. The conference call today will be interesting.

Good time to add some more. Saw it went down and should’ve bought some more when it was down around $10. Just added some more @ $140.

 

[Saint_Ward]

Good time to add some more. Saw it went down and should’ve bought some more when it was down around $10. Just added some more @ $140.

Ha I add more every 2 weeks. Friday is the day.

One day I will probably buy some in my IRA. Just have so much tied up with HEI.

Good problem lately.

 

[Saint_Ward]

I love this sentiment about not doing share buy backs...

We have a follow-up question from Gautam Khanna with Cowen.

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Gautam J. Khanna, Cowen and Company, LLC, Research Division - MD & Senior Analyst [78]

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Yes. Actually, as a follow-up to the prior question, have you guys ever contemplated just repurchasing A, either issuing more common, then that would just be an accretive move out of the gate, won't it?

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Eric A. Mendelson, HEICO Corporation - Co-President & Director [79]

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Well, Gautam, the problem with that is that the issue common -- to buy Class A, that we can do. But to issue common, of course, is a process, a laborious process and so on, and that could potentially put pressure on the common, right? Introducing more supply of the common stock. So I'm not so sure that the common holders would be thrilled to hear we were issuing common and buying into Class A. And particularly, you have a lot of common holders saying, gee, Class A holders have bought the stock, let's say of late, over the last few years, at a discount, and then you're doing that to sort of push up the Class A at the, potentially, expense of the common, so it's something we've looked at. And it's not the first time we've had the suggestion, but we just don't think that, that would be the right...

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Laurans A. Mendelson, HEICO Corporation - Chairman of the Board & CEO [80]

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There's another thing too. We're in the mode to expand HEICO and make it a larger company, more profitable, more cash flow. And you can't do that by buying in your shares and shrinking the company. So it's really a choice. Do we want to spend money by buying shares? We're just suggesting buy one and sell the other, and what Victor suggest would happen I believe is true. And that's -- also, that, to us, sort of smacks the financial manipulation. We are not in the business of financial. We have never done financial manipulation with HEICO. Some companies do, we don't. And the market sets the price, and they buy it, the A, because it's 20%, 30%, whatever it is, less. And we just let the free market set its own price. So all of those things go against the way we have decided to run the company. I think it's more important for shareholders to look at the gains, and the very significant gains on whatever shares they own rather than to be thinking about, oh, if they buy this in and sell that thing and do all this financial engineering, that's why we're buying HEICO because of financial engineering. We really want to run a very, very strong company and not be financial engineers.

 

[superchuck500]

@bclemms I’m taking NUGT profits this morning

 

[You]

Today would be a good day to take profits in just about anything. Heck even gold is up.
S&p up 1.2% + 35
Dow up 1.12% + 300
Nasdaq up 1.6% + 122
Russel up 1.2% +17

Incredible

 

[DaveXA]

Today would be a good day to take profits in just about anything. Heck even gold is up.
S&p up 1.2% + 35
Dow up 1.12% + 300
Nasdaq up 1.6% + 122
Russel up 1.2% +17

Incredible

Unexpected tbh. I don't know what to think these days.

 

[bclemms]

@bclemms I’m taking NUGT profits this morning

Smart man. I wish I did. Got caught heavy handed. Instead I'm about to load up on more.

 

[Saint_Ward]

IAU and RING popping today.

AMZN is up, despite overall markets down.

 

[You]

Huge ups today
Nearing alltime highs on dow nasdaq and s&p

Employment data looks great.

I’m not buying in but I’m certainly not selling