RE: RE: $.50 warrants It is my understanding that management is still pursuing the financing which they should not.
It was a necessary pre-condition, but the company should never have agreed to it. Management must know what the company is worth and only issue shares at a premium to that value. It is the proposed financing that is the huge overhang on the stock (not the acquisition of Mengapur). It severely damaged management's credibility. Management needs to show the market that they are shareholder focused. I stil think the best way would be to start paying a dividend now. Paying out a % of profits such as 25 to 50% would do wonders. The stock would probably double (or even triple) within a week. If for some reason they did need funds in the future it could then be done at a fair price to existing shareholders.
For example, a 2 cent quarterly dividend is
.08 annualized. Is the stock going to trade at an 18% yield? Unlikely. If the stock doubled the yield would still be near 9%. The stock could easily trade to $1.20, giving it a 6.7% yield and a 5 P/E. If they needed funds for Mengapur they could raise them later at a more favorable price.