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  • svgoley svgoley Feb 5, 2013 9:23 PM Flag

    elisting date and cost

    Can relisting be initiated on the last day? What is the cost savings if they list on the 12th?

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    • No idea on cost, but I'm curious about the PPS requirements. With an initial listing, a min $5 PPS is required. With a continued listing, a min $1 PPS is required. In either case, a reverse-split would be required (barring a near-term spike in the PPS, which appears unlikely). A reverse-split would require a shareholder vote, and thus a proxy solicitation. Since this action has not been taken, I strongly suspect the company will not be filing for re-listing anytime soon.

      My perspective is aligned with those that believe that an asset sale is likely. This is consistent with the recent filing, and (IMO) would unlock the most equity value (assuming proper execution, and the current mgmt team appears to be experienced in this arena). Mgmt's stock option awards align their actions with share price appreciation, which is a positive. The negative goodwill from the accounting scandal, animal nutrition sale fiasco and, now, pre-existing contract issues acquired from M2P2 make the argument for sale even more compelling. This is a company generating in excess of $360M in revenue. If the operations are split and sold, the equity value should (I certainly hope and expect) exceed book value.

      • 2 Replies to darth_trader_92660
      • "If the operations are split and sold, the equity value should (I certainly hope and expect) exceed book value."

        Yahoo indicates AgFeed's mkt cap is $14M and Enterprise Value at $76M. If those are correct, that means your predicting we get $1.20 or better?

        That's quite a gain from today's level, but we saw how quickly the stock moved to over $.80 last time it looked like AgFeed was moving forward.

        On a P/S ratio valuation, $76M is only .21 of sales. Seems pathetic, but evidently accounting for pigs and pig supplies is too difficult for even legions of CPAs so we languish, then sell out.

      • I couldn't agree with you more. The company does have promise and everyone knows it, but tangled in a web it just can't negotiate its way out of. An asset sale of part, or all of the company is imminent at this point. You can see that all parties involved are trying emphatically to steer them down the proper path. I'm betting Hormel winds up with it all. Its not just a perfect fit; its the only fit.