going against the grain here and buying some shares in the mid 50s afterhours
given the poor results cash flows were surprisingly good - when accounting for the after hours drop available liquidity is now 50% above current market cap - remember the company has no debt
while I fully expect the company to go out of business at some time going forward these guys will have some more shots to right their ship - perhaps they will have another lucky punch like Zumba in the future - who knows
they have been around for a long time and they will be around for some more years from here I guess
Basically, the core business is flat, dead, at an unprofitable level and they will be "unprofitable" for the entire year. Unfortunately, all that cash will not be distributed to the shareholders so it doesn't really matter, from a shareholder perspective, how much is in the coffer. On the other hand, their cash burn is very low now so they could survive for a few years at this level. However, knowing that Q2 (quarter ending April) will have bleak sales, it puts the shareholder in a bind. Hold for hoping for better days? hold due to the cash level? I think this will sell down to the sub $0.50 level and will cause capitulation down into the $0.30s to $0.40s. Thinking they will do a 10-for-1 reverse because they know they need to avoid a delisting.
Cold,I agree with you,people are only buying this because of the amount of cash on hand..Zumba is dying just like all of their other games...
It will be interesting to see what happens to Majesco two years from now when they run out of cash..