Solution for Low Share PriceI have been thinking of various ways to increase the share price since the market has been ignoring the stellar financial results for years. Two things that I would consider if I was management / ownership.
1) Share Buybacks - Given I think that the shares are trading at 3.25X trailing PE, it would make sense that the company use some of their free cashflow to buyback shares from the open market. This is a terrific use of capital. It would provide a great return on each dollar invested and improve any future PE calculations. Gotta say that the market should love this kind of move because it has so many positives for both the company and shareholders.
2) LBO - If I was rich, I would arrange a leveraged buyout of this company. I could use borrowed money to buyout all the other shareholders at these low prices and use the free cashflow to service and pay down the debt used to acquire the company. Based on my calculations the company's financials can easily support borrowing way more than the market cap of this company. The financial math works so it just demonstrates that this company is hugely undervalued.