ERGO STOCK TRADING WAY TOO LOW - PRIVATIZATION COMING
Be careful with Ergoresearch (ERG-TSX Venture). Stock price is roughly CAN $0.20/share and book-value is CAN $0.29/share. I would not at all be surprised that a buyout of the company by its founders, major shareholders, will take place. When the repurchase (normal course issuer bid or shares buyback) was announced in 2015, the stock was trading in the $0.35-$0.40 range. Why has it dropped 50% since? ERGO will need financing if it wants to keep as a going concern. The balance-sheet is not good at this point.