Can you elaborate? I just purchased more GENC stock. You say poor job, self-serving, etc. Are you short the stock?
I did some homework and see that Gencor was a huge beneficiary of tax credits for machine sales a number of years ago. Astec, CMI, Terex did not see the opportunity or did not take advantage of it. The cash that they received was not paid back to management. Its still on the books. Hopefully, it will be put to good use.
Trading a hair over cash value, this stock looks good.
Take a look at how long they have had huge cash balances on their balances sheet. They had $37 million in 2006. Shareholders equity is up 30% over the past three years. Share price is down from $12.05 to $7.65 or 36%.
It is a great thing to have, but it does no good if it is not put to good use. To few investors have any confidence that current management can do anything useful with the money. No interest has been expressed towards rewarding shareholders. Management is perceived to be a huge liability. It goes back to the attempt to take the company private at below fair market value some years ago.
It is an indication that management will look to stick it to shareholders any chance they get. The tax credits the company took advantage of to build their large cash balance kicked in shortly after the failed attempt to take the company private. Management appears to have known a windfall was coming and tried to buy out the common shareholders at rock bottom prices. Now the cash lies fallow, not doing much good.
It is a shame that a company with such a strong balance sheet trades at such discounted prices. The management discount may just keep it there for some time to come.
Genc has been making an acquisition for 2 years,Genc was fortunate to have cash on books with no debt on 3/9/09 when a lot of other companies did not. GENC has done a poor job, did not buy back shares below cash value when they could of,Genc lowered their stock portfolio at the worst time and bought munis,GENC was lucky getting involved in the synfuels and I am sure EJ is sick he had to put the majority of the cash on GENC books,Genc got lucky in the synfuel agreement because the Utilities delayed payment for the machinery hence increasing GENC share of profits via the contract.E.J. does not care about the shareholder,E.J. is the founder and believes it is all his.