This was the strangest one ever....but the most informative, IMO
Most of the questions one would have wanted to ask were asked today.....DR answered most except for giving guidance....his answer on that was equivalent to (excuse the expression) "shove it", IMO.
Many investors have grown tired of the hassle....but I got the feeling today that noone is more sick of the hassle of being a public company than DR. He expressed it today openly. He was feisty today. It's clear that he still believes in the future but he's tired of reporting to investors.....we are wearing out of patience and he clearly expressed that in return today.
He explained the financial sensibility of the PIPE deal......why the R/S was suggested at the time of the PIPE but why it's no good now.....why the 300-500M annual revenue number exists (always wondered about the relevance of that beyond just being a lofty goal).....cfo cleared up the EBITDA requirement removal issue....that the Combat Pilot is a very long term deal that won't add much to the picture anytime soon....and other things.....why the company is attractive based on its growth pockets and its logistical positioning (this last one being highly relevant, IMO, to talk of a takeover).
The central takeaway for me was that he's tired of the hassle of running a public company. He could have answered all questions without the first word about going private....but he too opportunity to express it several times.
So sorry he's tired of running a public company! I bet he wasn't tired of it when he took our money to run his company. If he's so tired, let him take it private and pay us off, I'd be glad to be free of this dog.
I asked many questions today, and aside from guidance I came away satisfied with the answers. Re going private I think it is more likely that a SKUL or LOGI would want to pick up MCZ on the cheap. At a dollar a share a company would get about $130,000,000 in sales at a cost of one half of that amount.
We all expected better results, but I think that the overall economy did MCZ in, and even with that head wind MCZ reported a profit. In hindsight the quarter may have been good given the hand that was dealt.
Darren does not like being taken to task, but he plays it close to the vest when it comes to sharing news, and I think today was an awakening for him. Whether he likes it or not he is running a public company and we are the owners.
Near term will probably not be pleasant in terms of the PPS, but today's news should not have caused the after hours sell off that it did. Going private would cause some extra $$ to go to the bottom line, but it would not increase sales. Again a takeover by another larger public company makes more sense to me.