earnings coming quickly and b4 options expiration...Liwa getting ready to play hardball? Maybe they are finally sick of the games...and will take the gloves off. The timing is about right but they announced rather abruptly 1 week and on a Friday...
They have been waiting until 1 week before and announcing on Friday for several quarters now. I do not think we will get anything other than a quarterly report. I do not think they care about the stock price in the short term. They do not need to raise capital and the insiders do not seem interested in profiting personally from the stock price (at least in the short term), so they have no incentive to do anything to fix the low valuation. I am most interested to see if there is continued analyst interest. We will get the same four or more analysts as last time or will we be back to a CC with no questions because no one cares?
I believe we will get an analyst or two. The CC questions last time were serious and conveyed intent to add or enter the stock (none said vacate, said was would not recommend or add as I recall) given some clear action by the company. I think it was apparent LIWA's claimed inability to convert funds is seen as questionable; I don't believe anyone thinks LIWA a fraud, but believe the main concern is that the company will continue to hoard cash -- and if you read the annual report, holding retained earnings is mentioned in quite a few spots as a means to finance growth. LIWA's responses seen by some as inadequate I view as responses of a group caught a bit by surprise, and I believe the follow up questions pushing the point (share buyback) were helpful for LIWA to hear (and maybe think about).
I believe LIWA is going to deliver. If they continue to perform, it will be in the next 3 Q's. It might be buyback or dividend or a solid purchase of another firm or a large expenditure for plant in the ground -- any of these will be seen by inst investors as positive. On the buyback, it was approved in 2011 and barely used; Investors especially institutional need LIWA to show they have can get things done on the financial management side in addition to the thus far excellent performance on the production side.