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Aerosonic Corporation Common St Message Board

  • gmmcdon42 gmmcdon42 Mar 11, 2012 4:02 PM Flag

    Up_ ...........................................

    Most people when they go long on a stock (especially when there are no dividends) expect that there will be price appreciation in their life times. The annual high on this stock is $3.48 and it will remain at this level for the next year. I do not see anything that would cause anyone to bid up the price on this issue above the annual high. E-T knows this. That is why they are willing to bleed out whatever shares they can above $2.85. There is much risk and little to be gained buying this stock at its current level. I will remain with my position that this will not be a buy until the price drops to $2.40 The problem for current holders is how long do they want to hold onto dead money ?

    Theoretically you could purchase a 51% controling interest in this company for less than what some of the homes sell for in Clearwater.

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    • The market cap as of today is a measly $10M.
      Total assets are about $24M while liabilities are about $15M, so net if the company was liquidated tomorrow it would be worth about $9M which means the market is only pricing the shares at about 1.1 times book value which is absolutely retarded.
      No P/E and shares at nearly book value and the bid sitting at average retail investor position size at $2.50/share well below book value. Meanwhile Electro-Technic really only has about a $1.2M priced investment in AIM, so I think the shares down here at $2.70 or so are at rock bottom. Even if some interest came into the stock and begun valuing the shares at a P/E of two, which is still pathetic, it would trade at nearly $5/share so holders need to just be patient, I cannot imagine Electro-Technic will desire to shed any more of their 444k shares at this point; at least not for any price under $3.

      good luck

    • I can't dispute that this has been dead money for some time and may be for awhile, but I am curious as to why you see "much risk in buying the stock at current levels." At $2.80, I think due to the operating leverage of this Company and the operating improvements that are underway, it has much more upside than downside. Earnings will continue to improve and hopefully will the amount of new contract wins. E-T's current posture is certainly a negative for the stock, but maybe somebody will take them out of their position. Their current strategy is certainly quite strange. At these levels, one is just buying a call option on the future prospects which look to be improving.

      • 1 Reply to Friar9
      • The view out the windhield is indeed better than the view in the rearview mirror. The company is moving forward at a snails pace, The risk in buying this at the current price level is that you may wait a year and not see any price appreciation to speak of. The company says that there are 2,000 stock holders. If you take out the shares held by insiders and institutions you will see that the average shareholder has 1260 shares. The average shareholder has held this dead money for so long and they have so little tied up in it that they probably do not even check on how the stock is doing. If they try to sell they would have some difficulty selling 1260 shares due to the lack of interest. So they hold on hoping the company will invent a new wigit and interest will take off.
        The company could probably unlock shareholder value if they would be aquired or if they would aquire another company in the industry. If I were E-T I would be pushing that agenda on the inside.