Reasons why it looks cheap and why no one appears to be paying attention?
1) Inconsistent revenue & earnings. 2) No/little guidance from management. 3) Management's seeming indifference to investment community. 4) Conference calls convey lack of enthusiasm re revenue & income growth. 5) Book value means nothing if assets aren't producing.
In sum, the company & its stock lacks appeal because it appears to be run solely as a salary generating operation for the employees. What has shareholder patience yielded? Check the long term chart.
BDR got some love moving into earnings last quarter b/c investors believed that would be the quarter where BDR would show strong earnings.
BDR's dissapointment broke a few hearts, so a bunch of investors gave up on her. Actually, this is what the BDR board usually looks like - kinda dead. And deservedly so.
But I'm with you. As I've stated before, I think that BDR may come up with a strong Sept quarter, or at least a strong second half. I base this on the commentary in their last earnings pr and in the CC where BDR states that they believe the second half of '09 will meet or exceed the revenues they achieved in the second half of '08.
BDR had $19.9 in revenue the second half of '08. In the conf call they stated that their breakeven was between $2 and $2.5 rev/month, or %6 -$7.5 mil per quarter. Even adding a big fudge factor, those are good numbers.
So if you believe their projections they should be solidly profitable the second half.
Of course BDR has had a difficult times in past quarters meeting expectations and projections, so no gurantees. And obviously there is someone that wants out.
But even if they come up with a sucky Sept quarter, downside is somewhat limited from these levels since the price has already gone down in expectation of a bad quarter. I mean they are trading at about fourty percent of book.