The bottom line is that MCZ is not bleeding right now, but it's hardly generating a lot of value wither. The goal has to be average gross profit of around $11.5M per quarter, or $46M per year for 2013.
That shuld get the valuation back to $2 at least.
The best way to look at it is by seeing how much cash the company generated last year. Simply take Total current assets minus Total liabilities.
The answer is -
March 2012: $9,049
March 2013: $9,493
So, the company is creating some positive cash flow. Balance sheet improvement has been remarkable, with the bank loan reduced by half.
Markets are not "bigger" than the Fed. Fed has unlimited resources.
The only thing that could stop the Fed is inflation and there are no signs of that.
Yeah. Even though the SPY stalled a little around these levels, everything else keeps going up (tech, small caps, etx.), suggesting this is merely technical and should break.
Fed doesn't do market-to-market. The Fed doesn't have any money, so how does it buy bonds? It buys them from dealers (banks) and it hands over printed money (reserves). Naturally, if the banks do nothing with it and keep it with the Fed, it doesn't mean much, but I'm guessing most of those reserves end up in stocks.
Exactly. They won't be selling anything. They will hold to maturity. That means they will only profit.
The Fed is (still) not 100% of the market, so bonds can still move around a little. However, the Fed can't really lose money since it has no "real" money to lose. It's merely printed money that they used to buy those bonds.
I'm guessing we'll see 2.20 pretty soon, just no today. Market will overcome that as well.