"Problem seems to be that most of the "profits" are tied up in a growing markers receivables and cage capital."
The growing cage capital is a function of free cash voluntarily being reinvested into the business. It's a good thing since the more cc they have the more money they make. Which is why they are putting it there.
"Maybe the stock is reflecting a coming offering."
An offering isn't necessary for growth. Increasing cage capital is generated every month. They have already said any offering would be accretive to earnings, so it isn't that.
By all appearances it continues to be China Syndrome. From the standpoint of their operations things couldn't be better.
Agree with the cage capital comment, but the markers receivables is growing as well - due to increased business - Question is: When does the "profit" buried in markers receivable begin to be captured as cash earnings.
An Insider Offering would not benefit AERL - as no money, with the exception of exercised warrants, would flow to AERL - only the Insider sellers. But given the paltry trading volume - the only way Insiders can cash out of millions of shares is to do a fund private placement or public Insider offering.
Until that happens, the stock overhang is there and the street coverage isn't.