"I think a stock buyback would be the easiest way to get the price up to a reasonable level"
excellent idea!I would love to see it,but there is only a 3 million share float.What happens when they buy it up?Still,they should pop the stock up to 10 or 15 bucks with a buyback,just to show what it's worth.that would get them noticed by retail investors.with a float this small you dont need institutions.
The standard solution is stock buyback or a dividend. But you are right that the majority holder makes it more difficult. However, it is somewhat odd that they got this stock listed on the NASDAQ if they really didn't care at all.
Given the low volume, I think a stock buyback would be the easiest way to get the price up to a reasonable level. I've been in stocks that were more illiquid than this one, and they were able to keep the price up by providing an underlying bid. If the company can buy back their stock at below cash on balance sheet, it makes a lot of sense. Even if they can only buy back $250k-$500k worth of shares every quarter, that would be significant volume for this stock and it would boost the price a lot. And it is beneficial to the company too and much more useful as a PR tool than some of these stupid conferences. People like action more than talks.
The important detail that you all are missing is that there is a 65% controlling shareholder and another with just under 10%. The majority holder probably has no interest in a taxable cash dividend or for that matter seeing the stock go up.
It is also a very complicated ownership structure...not unusual for Asia/Pacific companies. This also confuses or becomes a reason to ignore the stock.
I am long a small amount and would like to add more. I agree this is a very, very cheap stock. It is a fact though that in situations like this the minority shareholders often get the shaft.
This stock will probably remain very undervalued until it is the interest of the majority holder to see it go up.
Naga is correct. the point i did not make well, was that the float and trading vol. is so small that no big institution can participate in this stock with 500 or 8000 shares traded per day......its just way too little.
i am not sure what really can be done? some have suggested a stock dividend.... not alot of options until they can get the price much higher. its a chicken and egg problem.
I'm not the brightest bulb on the tree but if I ran a public co. and I wanted the stocks price to go up , I believe I could do it.
In apwc's case they have to few shares for one thing , so first I'd announce a 25% stock dividend together with a $ 1.00 cash dividend. From than on I'd announce continuation of yearly stock dividend until we have 50,000,000 float . Continuation of cash dividend up to 1/3 of cash flow 1/3 for taxes and rest for growth , copy GORO . Do this we'd be at $20.00 in a week . does this make sense ? or have I had to many Boulevard wheats ?
have talked about dividend to management- having or dad discusions. talked with russell about why they did not get listing- never got a response. concerning pr they company is attending huge global hunter conference in san fransicko on july 17th-19th, 2 financial publication will be featuring apwc within weeks. fundamentally apwc is the cheapest stock in the world and one day it will run and if you are not onboard the move will make your head spin. i think the fund selling is over and maybe we can start moving higher.