Followed this stock forever and if history repeats they'll pull something off when sentiment is mostly negative which is where we're at. Knowing how close or not they are to something that could put to rest the liquidity issue is really powerful leverage. Each passing day is bait for more shorts to pile on. Take the institutional- insider shares out the share float is 54mil that against a month prior 48mil shares shorted could lead to a big move. Placed a small bet on May and June $2.50 calls
At 3% below book Einhorns annual 2% charge is more than covered. The market is effectively discounting by 1% a pool of capital plus some float that happens to be managed by one of the worlds best money managers who's track record is 20% per year. So the question is does DE use some of the capital to buy back the cheap stock--- even if it reduces the capital base on which he charges an annual 2%? He does on the other hand own a lot of the stock.
My guess is the patriarch received a big year end consultant fee, and then maybe some cash bonuses went to the rest of the H-clan. The operating assets are very mature so for these guys to outspend the revenue by such a factor is a joke. Watch how fast that remaining $3mil burns.
I wonder if this approach of leaking to the media that you want to be sold deep in a down cycle doesn't generate a few chuckles from the few in a position to acquire it. The stock might take a hit next week because it looks desperate.
The problem with mid-twenty percent growth is the comps that follow. The last big miss they had resulted in the stock falling below $100. That miss was then followed by a blow out the very next Q and turned the $100 shares into an excellent investment. The recent history of bounce backs is kind of a built in premium until proven otherwise. bbdott believes that the next Q will be a bounce. I have my doubts. Comps are a high hurdle, and competition is always tight. A new IPA, I doubt will move the needle.