The Company also announced it has entered into a Credit Agreement with U.S. Bank National Association. The Credit Agreement provides for borrowings under a $35 million revolving credit facility maturing in 2014. Availability of capital from this agreement augments the company's positive cash flow from operations and provides further flexibility to pursue strategic opportunities to enhance shareholder value.
It seems that NILE is looking at acquisitions for cash.
Its stock is so vitiated by inappropriate buybacks that
it can't be used at $30 for such a purpose. At least
those buybacks appear to have been suspended in Q4
resulting in a rebound for Book Value to over $1.
Perhaps NILE now has a better adviser.
There is no shareholder value in NILE. It's value is controled by the hedge funds and institutions that have the float locked down and control the bid and ask on a stock that is very thinly traded. NO ONE beleives a internet middleman ncompany with a PE of 60 is worth NILE's price. The credit agreement is so they can pay the electirc and heat bills becasue NILE is no longer generating enough cash to cover the spending and stock options given out by management. I just sit here and laugh at all the seemingly positive spins they put on a company that is dying.
I feel NILE's fundamental value is now near $7,
assuming inappropriate buybacks have permanently ended.
If NILE made accretive acquisitions with its cash and credit,
$35 might be justifiable within a decade.