Company generated $9 million in cash flow last quarter. Market Cap = $31 million. Normal EBITDA about $10 - 11 million. Red Oak buying consistently. Don't see anyone selling. Seems like positive signs to me.
From the outside it looks like a good bet...from the inside it has been a mess. There are always just enough positive signs with SMTX to attract the value hunters and keep the bagholders hanging on for one last run before escaping. We have been churning here on fair volume for the last couple of weeks with no end in sight. The MM seems content to dole out the shares to keep things liquid. A few insider buys but no impact on the pps. It always seems like we are 2 to 3 qtrs out from things really turning around...then the PSB group crashes, or the CEO quits, or a facility closes, or we lose a contract. Timing has not been our friend. If we could get $3.50 to $4 on a merger/buyout, I think everyone would give a big sigh of relief.
Good points. I am new to the stock so @ $1.90 its a pretty good buy, 82% if book value. My sense is Red Oak and Wynnefield will do the right things going forward to unlock value here. Red Oak must have a much higher avg cost so perhaps they want to lower their cost. Also, the company still has alot of NOLs so they don't pay federal tax which is a nice bonus. I don't expect it to rebound for a while, just feels a bit like a bottom.