I think it's fairly obvious that they're getting ready to sell the company. Cleaning up the bottom line, bringing on a CFO and COO who are buyout specialists and institutional buying despite poor earnings.
What price do you think they'll get? I think they're worth $500 million. All the bad quarters are behind them, they're about to have a lot more FCF and profitability starting in 2014. Their book value alone is 4.50 a share. I'm thinking I should buy back my August 2.50 calls and sell the 5s.
Folks like Ross and Baker don't work cheap. At its IPO VELT sold for $15. With a cleaned up balanced sheet, a return to profitability, and cost discipline, VELT could fairly be sold with a market cap of 1.35 billion (90 mil X $15) within two to three years... Such a 8 to 10X rate of return would make returning to work worth the time of VELT's current COO and CFO.