RE:RE:RE:RE:RE:RE:RE:$2.6mln in cash + $2.5mln in MCLD sharesI'm trying to get a confirmation on what management is going to do with the war chest. That will basically decide if I drop out of the stock or not. I haven't done my own calculation in while but with the right capital allocators/frugal businessman this is an easy triple from here. However, I've seen this story before unfold for the bad more often where they look to pad their pocket. Only time will tell if Robb is a good steward of capital for us.
As far as Agnity is concerned it's difficult to say how much the payments dropped as I have to base this off of a percent on the power points since the companies complained that too much was divuldged in the quarterlies previously. I'll take a 20%/yr royalty payment till the end of time. No need to butcher that cow I'm mighty full from it's milk. This becomes even more true if they can chip away at the debs.
Not sure where you're getting clear blue is doing ok? They've only recently started paying again. In 14 quarters they've paid 15%. By my math that investment is really still in the bad books. $383,400 was the deployed capital pretend they used debs money for that and their first year debs payment on that is $31,000 Clear Blue paid $4,000 so in my books you're looking at $411,000 by year 2. Next year they paid $14,000 so year 3 is $430,000. Then they paid $5000 so year 4 is $460,000. Finally this last year they almost covered their very rough cost of capital (I'm excluding putting in the cost to get the debs by the financial institution; although this was before the debs were done, and SG&A). So to me lets call breakeven for this company is a payoff at $500,000. For the 4 years of risk and delayed payment I'd want a 3x multiple for this to "make sense". Steve assured me that this company was a great investment and they will pay but to me I don't see us getting 1.5M.
Humble Abode is also in the penalty box and in a critical period. I've noticed a lot of the companies fail in the 40% area. Last year they only paid 5%. Hopefully the last Q is a sign they're healthy again.
One of the biggest things I'm waiting for is Compression Generation to pay. The bloody company is working full tilt still. In 10Q they have only paid $300,000 on $7M.
Medical imaging as long as they don't have debt there will be good value in the MRI machines still. Although they suck at getting the capital back as a non-secured lender.