1) Tiny market cap of $4M may be easily pushed up due to tiny float of 9M shares . Any good news during the Q2 earning on 8/5/10 , will cause MAJC to double.
2) Insiders hold 38% of MAJC shares and they don’t sell. Also institutions hold 27% of shares and they don’t sell either
3) MAJC formed a Special Committee and has retained Macquarie Capital to explore strategic alternatives to strengthen its capital position. Alternatives could include sale, merger or other business combination involving the Company.
4) MAJC has relatively clean balance sheet and tangible assets of 61M (see link)
5) At the end of 2009 MAJC had $150M in receivables and it has a record of going up every quarter. MAJC will try collecting on receivables and improve the Q2 results. According to investor relation, MAJC is trying hard collecting on receivables
6) Consensus Recommendation of analysts is OUTPERFORM . And Also Investor Relation Officer of MAJC is optimistic on the future of the company. They have a plan to avoid delisting (see link)
7) In 2009, MAJC increased its cash reserves by 57.21%, or 16.04M. Cash Flow from Investing totaled 32M (see link)
8) MAJC has a Debt to Total Capital ratio of 0.45%, lower than average in the insurance industry (see link)
9) MAJC is accused of growing membership by charging premiums below commercial rates and inflated revenues while reducing premium income to the level that the assets of the Trusts would become insufficient to cover liabilities. This is a stupid allegation because every company is trying to increase revenues by reducing prices. Consequently MAJC will win the litigation.
10) According to their website , MAJC is doing all the right things to turnaround the company . Any tiny good news during the CC of the Q2 will cause the stock to double. (see MAJC efforts on their website link)
One of the accusations against this company was that they hired someone to pump the stock in a fraudulent manner. Perhaps they did not learn.
I have followed this stock and company for quite awhile. They do not have a plan, that is rationally apparent to get this on it's feet. The only decent asset is the insurance company, but the holding company is in a negative position. Perhaps the in WC insurer is worth 50 mil. Apparently they have tried to sell and they cannot seem to, so it does not seem to beworth that to anyone who wants to buy that asset. They lost all their self insured trust business and that is where the lawsuit exposure is. Accusations of fraud and putting tons of money in teh pockets of execs at the expense of both their clients and stockholders. This could be salvagable, but is not likely. The California Insurance Guaranty fund is gearing up to take another company. I think it is Majestic. I sure hope they can find a buyer, though.
# 6 Consensus recommendation is OUTPERFORM.
The "consensus" consists of ONE analyst! And you can bet that the analyst works for Crummy's (Oops! -- I mean MAGIC's) investment bank. And, you will note that the rating has been OUTPERFORM for over a year while this POS has been tanking. For all you know, the analyst might be dead and they forgot to take the rating down!
Consensus is Outperform!!!!
What a dope! You must be dumber than an anvil!
You are short seller who does not have a clue what really happening with MAJC. You are assuming that the analyst is dead or maybe is paid by MAJC ? You are stupid like a shoe!
I attached link almost for every single fact for my 10 points; then you calling me name ?
You are POS and idiot who does not understand that 4M cap discounted evey single problem with MAJC. Remember , you started the name calling !
BTW , under how many names you are posting on MAJC board?
Don't know a whole hell of a lot about the insurance industry, do you?
The balance sheet is anything but clean. First, there is a serious question about the adequacy of the loss reserves. Each dollar added to reserves to fix the deficiency is a dollar taken out of shareholder's equity.
Then there is the contingent liability represented by the attorney general's investigation.
Clean? Not hardly.
So the I/R guy is optimistic, is he? What else would you expect him to say in public? Same for the comment about the company saying it is doing all the right things -- blah blah blah blah.
Sale of the company? Every possible buyer in the free world that has two dimes to bang together has looked at this toad and passed.
Reason #9 is irrational
With all due respect, rogerabc, don't believe you really have a very good handle on the gravity & scope of all the legal proceedings that have been looming for the past 2 plus years. The allegations/grounds for the litigation are not merely for underpricing business to capture market share. Take the time to read the pleadings. You might learn something. Secondly, last time I checked, the total dollars involved in all filed actions approached or may now even exceed 1/2 Billion!
Here are 3 questions that I would like to ask you:
1) Why you are posting so many messages on MACJ? What is here for you to bash this $4M stock?
2)I researched MAJC thoroughly and did not find and other troubles beside pricing and class action. Can you provide link for the additional troubles beside pricing that MAJC is engaged.
3) AMJC is priced for BK at $4M market cap. Why insiders and institutions dont sell shares if they think BK is a sure thing?