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Merisel Inc. Message Board

  • Stocksystm Stocksystm Apr 22, 2002 8:37 PM Flag


    Merisel caught my eye due to the amount of cash on their books. It seems incredible that a company with $7 per share in cash would trade for $1 a share (it did a few months ago). The price has rebounded by 350% and it still seems cheap. The $1 million buyback program is an additional kicker and really is substantial for a company at $3 that trades less than 10,000 shares a day. Looking at the volume numbers there is a lot of buying going on approximately once a week which may or may not be related to this buyback.

    There must be some sort of catch, but no one on this board has been able to intelligently articulate why MSEL shouldn't trade for $7 a share.

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    • Merisel hasn't been trading at $7 or more because with their past losses. I quarter or two of those could deplete their cash balances. But, it looks like the firm is in a new direction with all none functioning units sold. Its a new firm with new sales and no more lossing interests. So, with increasing licensing, sales,if earning materialize the stock could do very well. The next quarter will tell a lot. Imagine if they do lets say 75mil in sales and does 10cents on the dollar in net. I have no idea if or when that may happen but, i would think increased sales and earnings or breakeven with projected profits the next quarter with do the stock well. Can you believe the stock was tradeing in the 1.67 range for months when i found this stock. Put in a day order at 1.67 and the asking was 1.69 and i didn't get it. The next day i put it in at the same price for 30days and the stock went to like 2.20. Immediately bought the next day and added like a week after that.

      • 1 Reply to radioo2001
      • Are you dreaming? they sold $14.1 las Q just software licences, expect a 25 % increase the most =$17.6 mm, but will be enough to be in the black ahead of time, they are expecting to be profitable in the next 2 Qs.
        Or even better the will star again selling MS products ,which is my dream.
        BTW they have $56.578 MM for 7.890.000 shares so we have a lot or room to go up, and i think they have finished buying for the repurchase program, i am glad the MM did not let it go today.

    • Maybe this has something to do with their depressed stock price:

      Loss from continuing operations before extraordinary item for the Company decreased from $21,166,000 for the three months ended March 31, 2000, to a loss of $12,791,000 for the three months ended March 31, 2001 due to the factors described above.