They reported a $2.8M loss or 20 cent loss on $10M increase in y/y revenue. Neg working capital in the qtr of $22M. Restated FY 2012 results - worse than previously reported. As of 3/31/2013 9.8M cash down from $15.8M Dec 2012. Wow! They have more than 50 notes outstanding and they admit more than a few have covenants that have been and remain breached. This comes as no suprise but the cost to the co will be articulated at later date. Massive dilution coming. Goodwill assoc with acquisitions has not taken a hit - but it's just matter of time. I guess the book now significantly below $1.00. If you love this investment idea than do your family a favor and wait till it falls below $3.00 before you buy it. Park City capital going to get punished holding this security maybe forced to sell if he gets redeemed.
It's not too late chief to save your family the despair of you getting wiped out on your short. All the doom and gloom you laid out in the 10Q today yet the stock is up. Why? Is it possible the smart money understands what's going on and you don't? Let me answer that one. Yes
By year end this will be a debt free cash generating machine. Shareholders will have a lovely special cash dividend returning well over stock basis and then in 2014 a big cap gain on the sale of the company. Numbers are probably somewhere between Park and Sabra but I think their $12 total value is about right.
perhaps they were trying to grow the company too quickly? I realize in these economic times there were nursing home " bargains " to be made and Chris and Boyd made them. Pausing now to get bearings may be a good idea. I still have faith and am long term.