SLTM Management presents at Canaccord Genuity on Thursday morning. If the stock trades off that day, it is likely a sign that institutional investors do not believe that Solta Management will sell Solta in the near term. If it trades reasonably higher that day, investors can likely use that as a sign that Management realizes the best course for for maximizing value for SLTM shareholders is to monetize Solta this year.
Institutions were likely selling today while retail was buying. Management does not appear willing to leave and likely wants 18 to 24 months to try and right the ship and garner more value. If they execute, they should create value in the next 24 months. If they don't, investors will be in a worse position with a stretched balance sheet, two more years of failures, and a declining asset value. Either way investors probably need to reset their time frame for any monetization of SLTM.
It will likely take a lawsuit to dislodge Management in the near term. It is hard for Voce to justify spending significant funds on a good securities attorney when they only own about $1 million of stock. You need to amortize the legal fees over a much more significant economic investment. Consequently, this management is unlikely to leave without a bear hug letter being made public by a strategic buyer.
However, any potential buyers will likely continue to beat up Solta in the market and only make an offer after another disappointing quarter. The Solta sales force is in disarray and will likely get hurt even more with a mid-quarter change in sales strategy, company financial issues, a new CEO, and rumors of a company sale.
After another sales miss, Solta will have fewer options and a lower valuation. Solta needs to do something now, but that does not appear in the cards.
Also, Soltastorm is the ultimate pumper predicting a takeout at $7.50 - that would represent the value of CYNO, ELOS, and CUTR - COMBINED - that is ludicrous pumping and is not going to happen.
Solta needs to consider some realistic valuations. However, the new CEO seems ready to try and fix Solta before considering any strategic offers.
Hard to see a scenario where SLTM doesn't head lower before it heads higher.
That is a very good post! I have never seen a message board with so many pumpers/clowns/hypers in my life. That Soltastorm is "off the chain". That is exactly why we have the selloff we are having. The proof is in the PPS! The company is going to be bought out at a hefty premium but the stock price is cratering?