A couple thoughts...For whatever reason, I keep thinking back to several
conf calls ago when Darren mentioned a couple times that is doesn't make sense for a company "of this size" to be a public company. Even at the time it struck me as odd to discuss this sort of thing since it raises oh so many questions. If memory serves, he was getting beat up a bit during the call but his comments on the subject were ones he brought up more or less without specific prodding. I think he followed up by talking a bit about the need to grow.
One can argue about the company outlook prior to it's historical stock spikes, but my opinion is this is about the first time in Mad Catz history that they appear to have the products and pipeline to ensure a multi-year run of growing revenue and earnings and cash. I think you could hear this sort of expectation in the most recent Roth presentation.
The way the stock has traded since the evening of the last earnings release pretty much says it all with respect to where MCZ is headed.
So, if all this is obvious to some on this message board, it is likely more obvious to Mad Catz competitors and suitors (if there are any) and money managers.....or perhaps I am in error.
I think management was fairly clear that they expect to get to 300 million a year in sales. Of course, getting there is not so easy. But, maybe, just maybe; they are headed in the right direction. If they can get to $3.00 a share in top line sales and can consistently provide a little guidance into the future, this could be a $6 stock. But, they need to accomplish both objectives to get to a stock price of 2x sales. At $6 a share, there would be many buyers ready to move them up the synergistic ladder. But, for now, we are a little south of the first rung of a very long and scary ladder. Hold on!
Hope springs eternal, but not necessarily in the land of stocks _ i'll briefly mention a type of experience that prompts my caution light to go on _ a small IT stock in '98 sounded good and all us longs drank the kool-aid _ the software products seemed very good, sales weren't there "yet" _ we thought management's pr needed to really step it up _ and this went on & on _ the board was very strong on hope _ as it went down the classic investor mistake of buying the sale price had some who were very deeply invested pay the price for years and suffer _ not a position any of us want to be in obviously _ and I'm not saying I anticipate that here _ what do I know _ but as a somewhat long type holder of our mcz I remind myself and say to others to be "prudently cautious" here and with all investments