You cannot possibly believe Darren left on his own terms and timing.
Look at this as an opportunity that would otherwise never have happened. You can likely buy a whole bunch of shares sub-20cents tomorrow and I will bet you that over the next 9 months that MCZ outperforms KTCC by a wide margin.
1. They provided crystal clear guidance for FY17. All non-RB4 revenue will be up 10% or more verses FY16 and gross margin will be 27-30%. Expenses will be between $9-$10mil lower than FY16.
2. All severance, restructuring, and RB4 charges are behind us.
3. They have excellent relationship with their lenders and are IN COMPLIANCE with all covenants.
4. Major retailer selected 7 SKUs (6 Tritton and 1 Rat) for Fall/Xmas and will feature on their shelves and also have 2 listening stations in at least 2000 stores.
5. Clearly they are focusing on their core bread and butter products.
6. The silliness of "passionate gamer" has been formally tossed in the garbage can as they return to focusing on the consumer.
So far I added about 30,000 shares after hours. Will likely add another 1% of the company over the next couple months. It costs about nothing!
Volume is about nothing. Dollar value is 1/5th of nothing. Just be glad there are some stupid people, that is why you and I and others can get super cheap shares.
I got to give this team some credit, they have laid it out there for all to see and measure against. If they achieve, we will all benefit greatly.
She gets it. Amen.
I almost fell off my chair. That is a BIG deal....7 Tritton SKUs and 2 listening stations at 2000+ stores! The drought is ova.
Dude, They got rid of a third of their employees including the CEO and BOD guy and it only cost them $3mil. Nobody got much of anything if you ask me.
If a person knew for sure that the CEO was a great CEO (and she might be) then it would be a tremendous stock to buy right now. Based on what she has pulled off (taking the reins of the company and cleaning house) so far, she might turn out to be great. We will know for sure in about 8 months.
Interesting report but a few surprises in it. Sales a little lower than expected but ok. Not much RB4 inventory left (3 cheers please). Not much net debt either, at least less than I thought they would have. Overall, not a bad place to start the fiscal year. ATM hasn't been used (as expected). I would guess those remaining should be pretty excited about the opportunities ahead. Sort of tough for things to get any worse. If I didn't already own a ton, I would buy a ton.
It depends on the buyer. It also helps that Mad Catz is a small company. If I am a company trading at a PS of 3 or 4 and have all the internal departments/people to make something of Mad Catz's products and brands then maybe I would have no qualms about paying 1 or even 2X revenues. It would be immediately accretive and the buyer is confident he can do more with the products/brands than Mad Catz had. So 140mil / 75mil shares and you get close to $2/share. Time is also on the Mad Catz shareholder side because of the reliance on the Xmas quarter.
But whatever, this will play out over the next 1 month to 2 years or so I would guess. I doubt if we know any more in a few hours.
Some days I feel really stupid. I learned a lot from you post so Thank You for taking the time to write it. What I mean by feeling stupid is that relative to your knowledge of EMMS I really am clueless.
Interesting post. I do agree with your approx. 20% number for insiders/institutions/message board readers&posters.
I think the vast majority of shares are in very strong hands and those shares are not going to move. They didn't move when the stock was recently at 70 cents or 40 cents or even now. Add up all the shares traded of late (over the last 6 months) and it is a very small number. Those holders of 80% of the shares are not going to react in any way to tomorrow evening's update. I believe this because they have never reacted over the last 5+ years.
That said, it seems to me that the direction of the stock both short term and long term is in the hands of maybe 20 retailers. You own a couple percent or more, I own a couple percent, likely several others here own a percent or more. Certainly several of us are savvy enough to buy more if the news looks promising. Certainly several may give up if they are brain dead or want to take a loss in a taxable account. Micro has stated he is now 100% out having sold close to a 1% position over the last 8 or 9 months. Hopeful has also lightened up some I believe but is still in to some extent. I have added at the current share price level and sort of think you may have done the same. Norwalk still holds his shares but might sell if it tomorrow evening is ugly.
So, my opinion is all that matters for the stock direction at least short term is what literally 5 to 10 individuals do on Friday. Simple as that. Lastly, I will toss this into the mix....I believe that THE REASON mcz didn't run into the $2 range last Fall was because the shares were in the wrong hands. Too many retailers (like me and you) held too many shares and those with the power to drive this to multiple dollars didn't have enough shares to make it worth their while. Though in hindsight, it would have come crashing down in early Feb anyway.
Holy Geez!...I was feeling good about EMMS today, then I read your post and looked at OPTT and thought....WOW. Then I read why this happened (contract valued at LESS than $1million) and I think.....VTSI just locked up $20 or $30mil of business (with a better customer) and the stock moved 4 cents!
Just once I would like to be struck by lightning and have one go up 3X in 1 day. So, sadly I don't own any OPTT.