GREY:WEWWF - Post by User
Post by
gwrbion Jan 28, 2010 12:21pm
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Post# 16728525
Strong balance sheet
Strong balance sheetUsually when a share price erodes like this is it because of viability or insolvency concerns. The fact is this Company (as combined with GIS) has a very strong balance sheet ($8-10M in cash and no debt) and continues to write new contracts. Plus it has a very stable repeatable revenue stream. At some point in time, every single GIS shareholder (as pissed as they are) would have sold, and the selling pressure will come to an end.
Management is currently embroiled in a quarter end reporting that is very significant, and which should be released mid-February. With a brand new management team in place, and with a crappy SP anyways, expect a very sour earnings release (due to severances, F/X reconversions and other one-time adjustments) which will be blamed on past management.
There should be a ton of insider buying right now, but the quarter end reporting black out period will last another few weeks.
This has to be at or near a bottom.