According to my level III quotes there are now 91,000 shares sitting waiting to be bought at $1.25/share. If I had a spare $91,000, I'd seriously think of buying them which would promptly DROP the price. If someone is willing to advertise that they have that many shares to dump, no doubt they have a lot more.
Nonetheless, I'd still love to know why this stock trading this low. I note once again, that if you could buy up all the shares at the current price, you would own the entire company and have $25m more in cash than you spent! Perhaps you could just distribute the money as a dividend.
-Perhaps you could just distribute the money as a dividend. -
They did a $1/sh dividend back in December. Maybe they will do another $1/sh for us again. Might be some sellers once they realize they have $1 less equity and cash per share than they thought they boughht if they bought since December.
Even after the $1 dividend, there is still $2.38 in cash/share -- less whatever cash they burned in the last two quarters. Let's assume that they burned through another $10m (a high estimate but possible), then there is currently just over $2.00 in cash/share. Let's hope the company can get its costs under control.
I think what investors hate the most about this company is their total lack of disclosure. Obviously the mismanagement isn't helpful either. Only time will tell.
The movement in the share price has me baffled. Perhaps very, very bad results are coming--sort of a CROX situation where the drastically lower sales make investors wonder if management will burn through all the cash before the company is right-sized.
Who would know that, other than insiders? I guess someone with access to NPD's cash register data.