A buyout is not likely in my opinion considering the current stock price. This is a small cap family owned company and those are usually harder to sell since selling company is not the management primary agenda. There are no options outstanding given to management that would be vested in case of a buyout.
thanks for info-picked up the shares I was looking for- now have 10k. That was me buying at 5.19 today. Wish I were in cheaper but I will make money. Also long on SD DDN TGB CDY(CDU in Canada) SNDXF.pk STTYF.pk and ERSO.pk. Upside wise -if oil stays above $80- I would expect(in 2011)SD to go to $12+ appx. If commodities including coal stay where they are-I would expect $3-4 from CDY and would expect ERSO to hit between $9 and 10. Bias -long. Trust no one and do your own DD. GLTLongs
ERS was on the AMEX. During good times it is a money maker and they share the money in distributions. As the price of aluminum and steel goes up so does their profit. As we are in a super commodity cycle-this is good. I expect the distribution this time next year will be projected at 1$ plus for the year. Maybe sooner as China is starting aluminum ETF-which will move price up on aluminum. Anyway imo buying now is buying a 20% yield. As to liquidity-as the earnings and distribution moves up-so will liquidity. I have dropped BRD and added AGPIF-which also pays a distribution.
I think you estimate about earnings is accurate. Based on the inventory levels $117M and interest rate levels, Q4 is going to be >25c again. I really like the way how they report numbers. Everything is so simple. Everybody interested in this stock should read their reports: http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=39078 Now, as far as you price target of $8, it is very very conservative. The book value is $40M. Interesting to note that the book value increased about 8.3M from Dec31 2009 to 31sept 2010 which matches earnings less divi. So, current market cap is $48M less book value of $40M, makes ERS P/E priced at below 1 (ONE!). In other words, if earnings in 2011 are the same as in 2010, the book value will be more than current market cap and company will pay decent dividends in the mean time. Define me cheap if this is not! OTC market liquidity is an issue here which explains current ridiculously low stock price.