Discussion with IRI spoke with Helena of Investor relations today to discuss a few questions I had of the company, mgt and share holder value.
As per 2008 mgt had initated a 5yr plan to turn the company around and has executed successfully. Since the stock has traded at a significant discount to its peers and the industry as a whole I wanted to know what mgt and the board were exploring to enhance shareholder value beyoun share buy backs. They have connected with the local brokerage industry and are continuing to have onpen dialouge with them about coverage. The "street" wanted to see the 5yr plan execution and su.pporting evidence to the fact meeting targets and growth projections. This period ends F2013 and mgt expects in the near term provided growth and revenue continues with trend that coverage in mainstream media will commence by a few firms. Some of these firms are alos LT holders and original seed capital. Mgt has been reluctant and prudent not to "pay" 25k for coverage and wanted to build the company and allow the success to speak for itself.. so far so good.
As for listing on a senior exchange.. it had been discussed in 2004 but obviously due to financial and corporate issues is was not persued. Mgt & board will be discussing this option and when this may be a prudent step in the future. When is uncertian. It would appear from my conservation that mgt has been very conservative and cost concious to ensure ongoing success and building the company with an adequate cash cushion against the uncertanty of the semiconductor industry. As they approach their "cash cushion" goal then incremental revenue will be used further to enhance shareholder value. This will continue to take the form of share buy backs, brokerage industry coverage and potential ungrading to a senior exchange. The majority of revenue is put back in expanding the business, markets, products etc to insulate against demand swings in any one particluar industry. i e diversification and cost management.
Overall a very positive conservation and the company is taking a measured and conservative approach to ensure LT success.. I expect to have some more details post F2013 release after another conservations with Mgt.
Cheers,