One interesting thought occured to me and I will appreciate your input.
This company has only about 5M shares outstanding at the moment. At least, it is the number that company claimed last time.
I have more than 3,000 new after-split shares myself. If there are people around who have substantial number of new shares on hand, it might be possible to take the company under some control and force it to do something that we, shareholders, need.
It is kind of very rare situation when small shareholders can really influence the company, but we might deal with such situation here.
Formally, shareholders are owners. They choose the Board and the Board chooses management.
By the way, I would also appreciate if people who respond say how many after-split shares they have. Exact number is not really necessary, just a range.
>I have more than 3,000 new after-split shares myself. If there are people around who have substantial number of new shares on hand, it might be possible to take the company under some control and force it to do something that we, shareholders, need.
Management may well have acted in a way which has turned out disastrous, but it worked for several years. And then, things changed.
How do you know that nothing left to buy? Unless you have some inside info from the company, you may not possibly know what is going on here.
Based on SEC filings up to today, I strongly believe that some substantial value is still in the company at this stock price levels.
I might be wrong. I admit it. And I might be wrong only if some kind of financial fraud is going on and company lies in its filings. Well, everything is possible in this life even if I don't believe that this is the case here.
I will elaborate a bit why I think so. First, after SOX, it is quite possible for management to go to jail for a long time for outright lies on FS. I do not think that these guys are willing to go to jail. Second, there are shareholders lawsuits all around and any serious misrepresentation on FS allows shareholders to go after financial assets of the Board and top management. It is just too much risk for them I think. Third, even if they are all willing to take this risk, there are auditors left. And auditors are VERY CONSERVATIVE now. They do not want any risk to bring their successful businesses down how it happened with Arthur Anderson. Auditors will do everything now to make sure that the most conservative info is in FS.
Based on all this, I believe that FS of many companies, including JRT, do reflect their current financial positions and they reflect these financial positions conservatively.
You'll need to invest about $3.5 million in the company to garner control at the current price. This is very doable, and you might consider establishing a pool of funds to do just that. The problem is you might find all kinds of poison pills and golden parachutes for the current managers that will cost you far more than $3.5 million.
The best bet for shareholders is if managment was honest enough to liquidate its holdings (worth about $15/share post split) and disolve the company. But I expect that these managers are not honest (especially now since John Robert is recuperating from brain surgery and out of the picture), and that they intend to suck every dollar they can out of JRT before it really is forced out of business. Just right off your investment. It's the best you could hope for.
Interesting idea. Just the word "take over" is likely incorrect here. Your number of shares (you mentioned 3,000 new shares) is not enough to talk about creeping takeover yet. You however might initiate some kind of Proxy Fight that will force company to act in interest of exisiting shareholders.