The real reason Steel bought common stock from the Company is that cash is required to acquire/expend the business and use the NOL carryover…see my discussion in "the plan" post.
Open market = cash to investors
New stock = cash to Company = turning NOL into real money=bigger increase in value.
Great Quarter...wish the selling pressure would end (maybe this is it) but I am guessing a lot of people/funds bought to look for a quick buck. Now they just want to move into something more exciting...this is becoming a long-term investment.
To save NOL's the Company cannot change hands (more than 50 percentage points)...the Company can buy a profitable company (based on an after tax multiple) and "shelter" the income with the NOL's. Plus make the current operations profitable...keep adding profitable companies in a tax-free environment...use the tax-free cash flow to buy more profitable companies...buy the right companies at a good price without changing ownership and this baby can go up nicely
There is also a window on the change of ownership so in a few years more money can come in and create more profits.
The Company will not be sold or broken up...why throw away $15 a share in NOL's...see WHX Corp...now Handy & Harmon...business has nothing to do with the old WHX...not to say we will not keep the current business that could be profitable but we need more profit...faster than current growth provides.
I am guessing the $30m is for an acquisition...That will be good news...the L man may already have a target.