Yesterday you had volume almost equal to earnings date volume and this was after news of share repurchase discontinuation.
The stock closed up for the day. Important tell for me because i think it sends a signal that someone is expecting a purchase announcement soon. Some fund has to be buying. BTN will buy someone soon in an all cash deal or itself will get bought out.
Current mgmt still has not sold any of its shares for quite awhile. I expect a positive surprise very soon.
I hope you are right about BTN eventually being bought out instead of them buying someone. This has been a very frustrating holding for years.
That annoucement of discontinuing a buy back is frankly nothing short of bizarre. Never saw a company make that type of announcement. Most companies just stop the purchases but keep the buyback on the back burner without making a big event out of it.
Further, they had to know it would be poorly received by shareholders and devalue the holding.
WTF were they thinking?
I have never been impressed with Cavey and company and frankly find their action unsophisticated to be polite.
Rumor has it (rumor but usually reliable source) that Wilmers had a deal on the table that would have been more of a merger than an acquisition. Could have been very synergistic - but it would come with a loss of complete control of the company. He was pushing hard for it - Welsh apparently pushed back.
Wilmers was unceremoniously dumped and Welsh's buddy Cavey was brought in. Board was restructured with Cavey supporters. He still seems out of his element in this industry and for a lot of supposedly smart people on the board - it seems like a comedy of errors ever since Wilmers left.
They were a good story about an analog company trying to completely retool for digital - switching from manufacturing to service and collecting no debt along the way. Almost pulled it off. Don't know what the deal was, but I bet it would have cemented a couple of accretive revenue streams with growth potential - which is all this thing needs to get to critical mass.
I sold out 3 or 4 months ago after holding for 10+ years. Feeling I have is that current board just doesn't know what they are doing but have to realize that once the digital roll out is over - so is their cash cow. True that the cash cow has no margin - but this will be a $50 million company not $200 million. There is no long term growth here without significant additional revenue streams.
They will need to take themselves private - and it will be a very nice cash machine that doesn't need shareholders to deal with. Or sell for the cash - perfect company for Larry the Liquidator from Other Peoples Money.
Best time to do that will be after the roll out slows down and the revenues really tank. Price will be down to cash on hand - but the profit potential from the screen and service division (and a bit from others) will still be there.
Will a $50 million company command the same pps as a $200 million company with the same cash on hand? Probably not but the actual profit will still be the same on a ton less expense. Margins will be way up and they can go private for less than $3 per share.
Just in my humble opinion - but I just don't want to stay here any longer and wait for it. If this was going to appreciate an investment - it would have happened in the last 2 years.
Absent any significant deployment of funds to acquire new revenue streams - I have to assume my theory is correct. Good luck to all.