I'll second that. That sure is different. And that was deemed cheaper than litigating. Wow! That is a pretty big chunk of change to let go of without a fight. I don't see what grounds the company had to sue. Wouldn't the shareholders who sold be the ones who were harmed?
Seriously, read the report. It's not 25 million with the adviser. It's 68 million.
Here's the information directly from the 10-Q (dollar numbers are in thousands):
"As of June 30, 2010, the Company had $2,456 in cash and cash equivalents, and $68,953 in marketable securities. The marketable securities are invested through a professional investment advisor."
And the losses were recovered after the quarter ended.
Once again, directly from the 10-Q:
"The net investment losses included in the current quarter reflect the overall dip in the market at the end of June 2010. Through August 4, 2010 the investment returns had recovered the losses experienced during the third quarter, however, we cannot guaranty that we will not experience losses during future periods."
This company has $71million in cash/marketable securities, and the market value is $71million. Read Benjamin Graham. This is his type of stock. Eventually, the road business will recover. Roads need to be paved. Value investors generally have patience.
Seriously. Read pg 7 of the 10-Q. Equities were $25,207,000 at 6/30/10. I doubt the munies & corp bonds fluctuated much, as interest rates have been little changed. Therefore, my assumption is the $2 million relates to equity holdings not the bond or cash portion.