An analyst asked why FSYS does not adopt a stock buyback program in today's conference call considering the stock's discount to book value and its strong cash position. The analyst also noted that a competitor of FSYS just announced its own buyback program ( not sure who?). Management seemed to sidestep the question by using double talk and vagueness.
They aren't looking for buyers- that action would tend to make the stock price go up, and lord knows, the stock price, is absolutely the last thing on their minds.
what does that mean? Isn't that something management is always supposed to be doing?
I guess the CC will also be a dud. The analysts will ask really dumb, non relevant questions like they always do. Management will be very coy about what they mean by M& A activity and will be clandestine on whether they ever plan on buying back shares. It will be the same old song and dance, causing damage to everyone except the shorts. some things never change
Today's very poor results could cause activist shareholder action. We could hear more about it in today's conference call.
the earnings were bad. The question is, what M&A activity do they plan on implementing and why are they trying to renew their credit line?
option premiums are rather low, indicating that post earnings volatility could be very mild.
FSYS will likely beat earnings estimates, but guidance will be weak. However, Wall Street is already expecting horrible guidance, so the impact on the stock will be non eventful. The market has already sold the rumor and will likely buy on the news, so we could get a rally especially if management decides to enact a share buy back.
All l they have to do, to juice up the bottom line is to eliminate their R&D commitment....that alone would drop $24 million to the bottom line, raising 2014 estimates from 24 cents to $1.24...
Kevin Douglas has over $25 million of his own hard earned money invested in FSYS. He has not sold a single share. Surely if FSYS was in as bad as shape as you claim, he would of already exited his position. After all, he didn't become a billionaire doing stupid things. The point is, he has enough clout to force the company to focus on shareholder enhancement.
shorting is way too risky...it offers unlimited risk. What happens if FSYS surprises to the upside?