Based upon the stock price action, it appears the market is not impressed with the CFO choice. I would have expected at least a small bounce on the announcement.
Their release indicates they don't know when they will be reporting. They are in non-compliance with the NYSE filing requirements.
Traders need to see a volatile price to make money. The further this gets from its recent high the less it will move. At what point will the traders change directions. Will it move up as quickly as HLF?
If this was a U.S. company selling for less than cash on hand, a hedge fund would be instituting a leveraged buyout to gain control at no net cost. They would then use leverage to provide working capital. Our problem is that only ADR's sell in the U.S and control can not be achieved. Management has no responsibility to the ADR holders.
When they talk about cents per share are they confusing earnings per ADR? If it is actually earnings per share, that would equal 28 cents per year. Since it is the ADR's that trade, that would equate to less than a 4 PE ratio at a $5 price not even considering the cash. If they were still trading at $12 I could believe the estimate, but not at $4-5.
A company with any earnings should sell for more than cash on hand. The PE ratio may be lower than a growth company, but it should be higher than one.
With the stock selling at approximately cash on hand, I have to agree. If management is not buying here, they are not acting in the shareholders interest.
Annualized earnings based on 12 cents per QTR is 48 cents based on your $3.60 cash the PE would now be 1. At that rate, we will be selling for less than cash on hand by the end on the year. Now is the time to buy.