Another quarter and years of stagnant progress by FLOW. When will a large investor get rid of the CEO and BOD so FLOW can be managed more strategically rather than just chasing more volume? This company has had the leading water jet cutting technology for a decade and management has yet to leverage it, not to mention their cash catastrophe in failing to buy their competitor. The BOD should remit there fees and management should get no bonuses and have their salaries cut IMO.
Activist investors want the firm to be sold so they can cash out. Given how much time it is taking to evaluate "strategic alternatives," I'd say there's a good chance management is trying to get investor backing to take the firm private and keep their jobs. Whether this happens or not is unclear, as strategic buyers should be at an advantage because they should benefit from various economies of scale and cost cutting. Of course, it is also very possible no deal happens and management and the board keep their jobs. In this case, I would not expect the stock to move a whole lot until financial results noticeably improve.
Financial results will not improve, in my personal opinion, because the CEO and the BOD don't have a clue, except how to pay themselves for nonperformance and protect their jobs? The only thing they seem to have done is give a bunch of cash to a smaller competitor and chase volume with low pricing margins through more distributors. My personal opinion is that management is primarily from a sales divisional background and do not understand the choreography of managing the integrated nuances of a technology company. I personally do not trust their personal objectives, strategies or accounting. I do agree that the best outcome is an acquisition for synergies and injecting better management, but I believe the CEO and BOD put their jobs before shareholders' interests. Look at where FLOW ranks on the ratio of stock performance to BOD and CEO compensation! If FLOW was better managed, I believe it could be a $12 stock!