With nearly 80% of the shares held by institutions it might not be that difficult to get enough votes together to take SCHS private for a couple of years so they can re-organize and re-capitalize without the quarter to quarter demands and reporting requirements of a public company. - Advantages? disadvantages of such an approach? What do you think?
With such a low market cap it may be ideal timing.
SCHS essentially is private. The capital structure is what it is. The company is a public LBO without a sponser. If the company can grow free cash flow, the stock will be worth a lot more than $2 a share.
First they need to demonstrate that they can generate enough cash flow to keep going as an ongoing entity. .. then worry about paying down debt and re-capitalizing. -- then generating a return. -- Or they may have to re-capitalize to be able to generate enough cash flow to survive.
Great idea ... however, the company is worth a lot more than $2 per share. The stockholders would get a bad deal here. If I were running this company I would try to do a buyout and convert this company to an ESOP. Honestly, I think this company is still worth $8 per share and this will be proven as revenue increases. I purchased a couple more thousand shares this morning.