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Nortech Systems Inc. Message Board

  • dm.debbie dm.debbie Apr 19, 2012 1:30 PM Flag

    Increase shareholder value

    I have been a long term holder of NSYS. Unfortunately it is the most illiquid holding in my portfolio. Often the stock doesn't even trade a single share. Previously I had a similar stock in my portfolio that shareholders lobbied management to issue a stock split which increased the liquidity and also longer term increased stock price. If other shareholders feel as I do it would be nice to begin a lobbying effort towards management for this action.

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    • I have never seen a reverse stock split work. The float is small, 1 million shares because insiders own over 50% of shares. That's a good thing. That's the beauty of this stock, when demand goes up the supply of stock is small, that makes for huge gains like it has recently. I don't like share dilution.

      • 1 Reply to gawepearson
      • I should have been a little more clearer. I held a previous stock that traded around $6 with several million shares outstanding. They issued a 3 for 2 stock split so that shareholders received 1 additional share for each 2 shares held. For example 1,000 shares before the stock split had a value of $6,000. After the stock split this became 1,500 shares with a stock price of $4 and same value of $6,000.

        The stock eventually moved back to $6 so that the 1,500 shares had a value of $9,000. In addition the stock traded more daily shares making it easier to buy or sell stock.

    • sellbullion, after reading your post. I would be careful who you are calling dummies.

    • Appears some people may not understand the difference between a stock split and a stock offering. A stock split doesn't create dilution or bring additional capital to a company. A company stock offering creates dilution and brings additional capital into the company.

      I would suggest books like "How the Stock Market Works: A Beginner's Guide to Investment" as a worth while read.

    • A stock split increases the number of shares therefore diluting (reducing) the share price. A stock offering increases the # of shares therefore diluting the shares, but the offer price can be set at a offer price to maintain current share price's and value. This new capital should only be used to grow the co and to increase shareholder value. for this stock with such a low price a split would only make this stock less attractive in a $1+ range. IMHO

    • I see you understand the difference. Factually Norteck is one of the most illiquid stocks on the NASDAQ and Norteck has one of the biggest bid/ask spreads on the NASDAQ. This is a just the opposite of want is needed to generate outside investor interest and upwards price movement.

      I can't argue with your feelings about keeping the status quo but please note I am batting 1,000 making money on stocks that have performed stock splits and I don’t know why Norteck would react any differently.

    • Earnings come out on 5/9. don't have a clue what they will be, but this co. is a great value with book and net tang assets $7.50/share. share float is small because insiders own over 50%. I don't want to see any dilution just to increase shares, like 2 for 1 stock split for a already low priced stock. If they have legitimate need for new capital and price the offering at current price levels, that is ok, that way we can increase shares and hopefully share price with good acquisitions. to the last poster, I hope you understand what a stock split does, and why it makes no sense for a $4 stock

    • you dummies. a split might help because there are so few shares. but, in reality, the problem is that the management of this company has the golden egg and is not capitalizing. they are a survivor of the depression and they should be increasing sales and margins - they should offer stock to the employees to create some motivation to make the stock price grow. Kunin should be thinking of taking it private, at this point, it costs a few hundred k for all the compliance.

      I think they will earn .60 this year.

 
NSYS
5.67+0.10(+1.72%)Jan 30 3:56 PMEST

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