RE:Way oversold. Someone may know something the rest of us don't. Let's say the dividend is cut altogether. The company is still forecast to earn $30m in EBITDA next year - that alone brings us to at least 3x where we are now in terms of SP. Didn't the Echelon analyst have a target of $3.00 and this was a recent revision after a change in analysts?
Higher margin sales are occurring. Margin on lower margin products is increasing due to the volume rebates management negotiated which are contracted (for a year, maybe?). Realization of the annual $5M cost reduction will also help results.
Question is whether smartedge expenses continue to increase and erode profits. May need patience for a couple of quarters until this is up and running.
Last point is on the BOD/shareholders. I'm new to this as I just got in a few months ago, but looking back at the Jan/16 press release, didn't the shareholders want to convert the common share to preferred shares and receive a 12%+ dividend? They were confident in the cash flows of the company then, wanted a 13% return then and I believe it's the case now. It was mentioned by an analyst on a prior call - the board is full of financial people. Why would they turn off the taps now? If it's to repay debt or have more money to buy back shares, these both contribute to increasing the equity value. Dividend or no dividend, I'm staying in but admit that I'm uneasy about the recent trades.