Imagine if those same directors realized that buying back stock could immediately put money in their pockets and the rest of the stockholders? They insist on taking the hard road, not the smart road.
With Convergent it is still up to BTN to execute. If everyone thinks the stock trades and is valued much higher than $4.70, then the company should be snatching up it's own shares. Even if down the road they would do a secondary for the same number of purchased shares at double today's price they would come out ahead.
Mgmt...think, think, think!!
Sentiment: Strong Buy
I'm sure the Directors felt like they went to Oz as they toured their new facilities at Convergent ... Convergent was equipped by a multi-billion dollar company (Sony) ... and, BTN paid .4x Price-to-Sales ... fire sale after Technicolor's bankruptcy sale ... changed the growth profile and the entire company ... it was "transformative" in every way ... we don't know what the book value is with the new (not accounted for yet) assets ... but, it's a lot higher than $4.90
You hit the nail right on the head! As stated in the CC, the directors have been going to the Convergent headquarter since the acquisition, to get familiarize with things. So i'm positive they like what they saw, so much so the insiders bought a ton of shares. If that isn't a vote of confidence in the acquisition i don' t know what is. Time to sit back and relax, when it goes above $5, time to add a little more. GLTA
Sentiment: Strong Buy
it's amazing how much impact there is from some insider buying....... it's refreshing to see the new shareholder interest in the company by insiders....... if the share price gets over $5.00, there may be another surge from institutions. GLTA
MM could manipulate as much as they want, this is going to 5 bucks in the short term. I don't think insiders for BTN have ever bought that much before. They are in the loop and believe the new acquisition will pay off big time! They didn't put almost a 1/2 million of their own money just to lose it. GLTA!
Sentiment: Strong Buy
Multiple insider buys by three or more insiders is usually a very good sign. Here, we've had three insiders each buying shares (not option grants) in the last week. Something good is very likely on the horizon. It may take six months or so to "materialize" but I think they know more then we all do. I'm happy holding here.
Last post on this board for awhile ... we all know my position here (literally 10,000 shares now) ... this reminds me a lot of this time last year when I was posting on the ABFS board about the potential to "double or more share price" when contract talks were settled ... at the time ABFS was trading in the low $6's ... it's now at $31.70 ... that board was largely unused ... anyone that posted said, "going bankrupt" or "show me" or "this is going nowhere" ... here is the deal ... Technicolor sold Convergent Media to Sony as part of their bankruptcy process in 2009 ... it was going to be the cornerstone of Sony transforming into Services ... Sony quickly changed their focus back to games/mobile, etc ... By the time BTN acquired Convergent Media, it was a fire sale after a bankruptcy sale ... BTN has not fully (or even partially) addressed the assets they just acquired ... they are not part of the balance sheet ... they will be significant ... and, they paid less than .4x Price-to-Sales ... and, they went from a company with significant assets in a declining projector sales business to a company with even more significant assets (although not as liquid) and significant growth ... last year's pick was ABFS ... this year is all about BTN ... glta
Going private would actually be an excellent move for BTN ... Enterprise Value is a joke ... Private Equity could roll in and pay a 50% premium from this level ... take a few years and build the digital signage business and then do an IPO ... they would make hundreds of millions ... going private would be profitable for everyone
Just because it seems like I'm the only person that is excited about this acquisition on the board, I would like to summarize the recent transaction and what it means for BTN ... it is transformative but yet largely unappreciated ...
Convergent was acquired by Sony in 2010 for an undisclosed amount (but, I would bet a whole lot more than $16 million) ... at the time Sony said, "it is a key building block of Sony's worldwide business-to-business strategy to accelerate it's transformation to a SOLUTIONS-FOCUSED ORGANIZATION" ... since 2010 Sony has struggled, changed leadership, and changed focus ... although Convergent is a global leader in digital media solutions with over 95,000 displays at 22,000 sites, it has not been a top priority for growth at Sony as they struggled ... today, Sony's new CEO has focused the company on mobile, digital imaging, and its games software/hardware ... in March of 2013, Sony cut 10,000 employees across the company and subsidiaries ... now, let's remember that BTN has reflected the cost of the Convergent Media acquisition ($17.4 million) but none of the assets/liabilities ... it was a fire sale at Sony ... BTN bought Convergent at .4x Sales ... unheard of ... Convergent has a state-of-art NOC and amazing facilities ... the assets will be significant imho
I added 1,000 shares today ... my timeframe is years away