I've written about this before. Cobiprostone development is a waste of time and money. Better to preserve cash and focus on growing Lubipropstone, to repurchase shares, and then to be bought out. Management so far has a poor record. They have shown they can continue to monetize Lubiprostone, but they haven't lived up to the initial hype about growing into the gastro space or into any other space.
100% write-off = $1.93
75% = $2.65
50% = $3.37
41% = $3.62
25% = $4.08
These are write-offs from the latest 10Q fair values which have already been marked down substantially. A sale at 41% markdown from current fair value is a give away. An orderly liquidation could double the stock price, and it could happen because lenders want out. If OHAI can't borrow, it can't make a decent return to justify continuing. They'd wind down.
it's over. It's a stampede for the exits while energy prices have rebounded -- wow. The energy loans are priced to zero. If management sold the energy assets for 25 cents on the dollar, the stock would go up. One has to wonder why management didn't sell them as soon as they were charged with doing so. Instead shareholders were given this cinderella story about how Castex was the portfolio's best investment. What a laugh. Castex must be swamped with debt, something management would have known about.
I let WLDN go at $9.50+. OHAI...what can I say? Still have that loser. Maybe petro complex pops just enough so Castex remains viable, enough til ATP settles and sells. Then OHAI might go back to $4 and I can step out quietly. Same old junk tune. But I think WAC could be interesting from here. Bought a few today. Bottom fishing -- probably a mistake in this market.
Despite being FCF negative mostly since 2006, CUTR finally looks to be priced a little more reasonably. Price to sales is 1.4, while sales are rising by double digits. Costs are rising and the dollar is hurting them. International sales would get a boost if a) the dollar turns lower, or b) a Chinese company buys them. I'm thinking the latter.