The other day, someone came in with a large position that he or she wanted to sell at 1.82 per share. It was a strange order since offering roughly 37,000 shares of AMNF at any price normally would be enough to collapse the price a bit. In a strong move, however, the Armanino price did not falter a bit. Over the course of the last few days, the asked at 1.82 has been whittled down bit by bit, and just before the close today, the last of that order was purchased. During the entire process, the bid never got below 1.80 and was a penny higher most of the time.
This trading tells us that the meaning of the last earnings report has been understood by the market. The stock deserves to trade at a higher value and we should see strength in the next week or two. In fact, we could get back above $2.00 in not too long.
I completely agree with you. The stock is .12 lower than where it closed the year, despite Amnf having had a truly excellent Q1.. It was certainly unfortunate that the Annual Report allowed people to reasonably deduce that Q1 would be less than stellar. Now that we know the truth and that the good news should continue for Q2 and beyond based on the statements contained in the Q1 release, the stock should at least get back to the highs of last year as an initial target . It may take a few weeks because some people got scared by the sharp decline -- which probably hit some stops by institutional holders who didn't want to risk losing large gains -- and they may need to see the stock recover a bit more before they step in. But I am convinced that that will happen. The last trade of the day not only took out the rest of the asked at 1.82 (5K or 6K shares), but somebody then put in a bid at 1.82 for 2K shares and the asked went to 1.85. If we can close at 1.85 or higher this week, we should be well on our way to a 2 handle IMHO. It was hard to add in the 1.60s and 1.70s without seeing Q1 earnings, but it seems to have been the right thing to do. There was genuine panic for an understandable reason which we now know was not only wrong, but very wrong. Things are very much looking up objectively. I'm betting that the market will soon agree..
yea guys, gotta say i agree. we are once again in undervalued territory. After all the madness following the initial report i've picked up additional shares in the 1.78 to 1.82 range... I feel that is a bargain considering a number of obvious factors. this was far and away my largest holding before the price drop, but just can't pass up these prices. its comforting knowing we own such a quality company with consistently strong cash flow with brilliantly conservative and shareholder friendly management. ed pera has made this his baby, lets just hope the man has many healthy years ahead.
as a side note about buy out. i'm on the no buy out side until ed pera has to step down. just keep letting him do his thing for say 6 or 7 years and just imagine where that compounding gets you. as opposed to 30% premium or whatever...