In regard to the below, I can think of a very big reason that p/s dropped, and it was not an 'amazing coincidence' from Frank. Joe Springer from Seeking Alpha. The stock was riding the down side of a sine wave before any of Frank's remarks, and it was the SA article that kicked off all the selling. Look at the volume in addition to the price swings.
BTW - I don't want to come across as the big defender of FR. Never met him, but I think he has done a very, very good job of promoting the technology and the company. I'd have never heard of NVIV if it were not for the work of Frank Reynolds in creating public awareness.
The $7.50 is a 'now' price; further, this is a figure arrived at by running #'s thru some model. An acquirer would play hell trying to acquire this for a $7.50 p/s price - shareholders would never approve it IMO.
By tonto.warrior.36 minutes ago.Permalink
Ok, points taken fbecker. HOWEVER, I cannot go so far as to discount any correlation between the "amazing coincidence" of Frank's most recent statements and the immediate p/s plummeting. Frank was doing great until the last couple of minutes of the R&R presentation. The shareholders and the investment community clearly did not like what they heard about the trickling out. It would have been nice at least if he qualified that with a remark that he wouldn't do this until the share price was safely above $3.50. That would have been reasonable and respectable.
Another question, fbecker: You said that in a year you believe we could be into double digits. I can see this as a possibility but I don't know how likely of one. And, assuming double digits, would the analysts then revise their ridiculously low buyout price of $7.50 to say $15? I don't know why they say $7.50 unless they mean the buyout price right now. There seems to be some discrepancy
Respectfully we may disagree on the Frank correlation because the stock appeared to be making a recovery from the havoc that Springer triggered. In fact, based upon Frank's presentation MINUS the last few minutes, I believe we would be above $2.10 right now. JMO.
Hey maybe Frank ought to divest because would the shareholders balking at a measly $7.50 buyout make a difference if RL and FR were to accept that price with their huge # of shares? Heck, even the institutionals would be realizing at least a $5 gain per share.
I have to say, I never expected this much drama for NVIV in 2012. And I certainly expected it to be over $3 by now.
One more comment. Part of me is glad it is this cheap. But now I have less $$$ freed up to buy shares than I did 9 months ago. I shudder to think how many more shares I would have if I only knew to wait until September instead of then.