Just picked up some shares in the $1.20's. I can not believe people are selling this stock at this level. It seems like they are primed for a good year of sales, growth in revenues and improvement in margins. I would think an acquirer would easily be willing to pay $3 for the contracts they already have and to eliminate strong competition. Expecting a big 2014.
cloud, I agree with your fundamental comment. However, I suspect that there might be short term supply versus demand issues. I commented recently on potential supply from the convertibles maturing in July and the forecast lower earnings (than the recent 4 cents) due to new business. From the 10K, there are also about 500K of warrants expiring this year with 30-75 cent exercise prices.
That said, it is plausible that by sometime in 2015 they will be doing 4 cents per quarter routinely. If earnings finally gets a modest growth stock P/E of 15-20 then, that would be a price of about $2.50-3.00. Note that they put it in both the 10K and the Proxy that they have to meet EBITDA of $6.3M for 2014 and $9.2M for 2015 to get their warrants vested for those years. Those are big numbers.