The shareholder equity is roughly $720 million. Book Value is $12/share.
Market Cap is $500 million and share price is $8
Shareholders are better off selling the entire company. There is a 50% gain not factored into the stock price.
I agree, sell this thing and be done with it. The only thing is, who wants to pay book for a company whose sector is in free-fall. This company never prided itself in being transparent. and this is coming back to the shareholders who beleived in Smith. I can'f follow what this company is doing and if you can, I say more power to ya.
Bottom line is this company sells a product that is hugely out of favor in this market. Possibly a buy at $6, but even then, what is the next shoe to drop at MFC that is hiding on the balance sheet?
The 'next shoe' already has dropped....see Shock's post on Silicon Investor.
Bottom line is that what one is buying is Smith's 'dealmaking' ability and the hope that the 2B, 3B, and HR's will do better than the losses generated by the strikeouts.
I would argue that Compton is the equivalent of a "grand slam" and we are still waiting on the outcome of Pea Ridge. In any case the two recent 'bad news' events have definitely taken a toll on the stock price.