RE: All downhill from hereNo question that we are all a bit nervous and i suspect many have lightened their positions due to weakness in the general markets, some uncertainty about Bennett's future business and no clue as to how much BEV stock is going to be dumped before there is a correction. It is hard to believe the 2CC, the underwriters, and secondary buyers, if there were any, were all willing to expose themselves as they did if matters are really as grim as you suggest.
I have trouble understanding how the future tax expense of $1.9 million really works. I think that because they are currently reducing inventory they are not permitted to increase earnings by using a future tax credit available from applying the accumulated loss against income in the future because there is now uncertainty about future earnings. As they were unable to anticipate sheltered future tax savings they were forced to make allowances for accelerated depreciation they have taken up to now which has reduced taxes but for the future the tax depreciation rate is going to be lower than the accounting depreciation so some of the taxes they saved ($1.9 million) could be payable in the future. Apparently if they make new investments then this tax liability gets pushed way off into the future so it may not really exist at all. Bottom line is that if they grow then first quarter was in effect net $6,700,000 =25c/share on 27,000,000 shares or 19c on 35,000,000. If someone would care to correct me, I look forward to enlightenment. Check https://www.fool.com/investing/general/2007/01/12/understanding-deferred-tax-liabilities.aspx for a better explanation.
What seems even more relevant is that they ended up the quarter with $39 million cash or $1.11/share.
Seems that developments on new business or acquisition synergies are needed to grow our remaining holdings or before we add.