Something seems quite strange about the PR as far as content, timing and subsequent effect on the stock.
First off - the PR itself - why now? No agreements signed with the DCIP partners yet and I never expected the lion's share of the DCIP equipment. Only one of the partners has frozen NEC out, one tending 20% NEC and another one non-commital. So what? Where's the news there? Seems too early for butt covering to me but guidance has never said anything about expected DCIP results.
Services division appears to be lining up very nicely and screen division appears to be in line as well - both good news for growing longer term revenue streams. Strong lighting is profitable as well.
Major benefit in China - NEC made locally giving them a leg up in non-tariff sales. Other markets including the 22,000 non-DCIP screens appear to be wide open as well. No problem on that front.
However, the DCIP "non-information" appears to be what shook the tree - followed immediately by a downgrade - when no one even knew they were graded originally anyway.
Balance sheet is outrageously strong - especially in this climate. Still have a significant portion of assets almost as liquid as cash. Add that to the rest of the PR and the fact that they are just about revenue neutral and not hemorrhaging cash as some of the competitors should lead to a solid pps - as opposed to a 50% haircut.
Just a 'frinstance - anyone else feel like a sale could be in the works? Very attractive target in the service and screen divisions. Significant liquid or semi-liquid assets. No debt - the only apparent liability has been getting tied to the wrong partner - namely NEC.
Half as expensive to buy the company out now than it was pre-PR / Soleil downgrade. Net effect has been to shake out some weak hands and make a sale of the assets (cash & equivalent) and the service / screen divisions. I see roughly $2 per share on net assets alone! Sell off inventory and it is a very nice accretive purchase for someone. Any thoughts out there?
I have always thought of this as more of a growth candidate and it can still be one depending on the final outcome of purchase decisions, the degree of success with the small chains, the profitability of the service network, and possible future aquisitions.
I did not realize that BTN is firmly in value territory as you point out. Here are some numbers.
Book value - $2.98 Tangible book value - $2.69 Cash and ARS per share -$1.2
That should at least provide support as selling subsides.