RE:RE:NoticeOlaf123 wrote: Respectfully, selling a facility at the right price could give management the courage to buy back some shares. Keith has like or replied (I don't remember) to a tweet about lean management in the context of recession. They are extremely careful.
If $750k, when you have $17mil, is going to give you courage to do a share buyback, then I would argue they fear the wrong thing.
I'm not saying that selling surplus capacity isn't the right thing to do, I'm saying that this is not what people should be focusing on. A lot of people hear have been investing for some time, this past Q was supposed to be the real coming out party for LABS. That expectation combined with Germany legalizing and US rescheduling has amounted to absolutely nothing whereas other players (in far worse shape) are soaring.
We should expect that leadership now make decisions that will enhance the SP for all shareholders (including them). They were only too happy to gift themselves pennies on the dollar equity in the business, now they should make retail happy too.
I would have been less prickly had the call been more upbeat and better guidance given, but the call was awful and a disaster IMO. They left everyone wondering what really is next for this business and what is the catalyst that will make it a player. They were silent on pretty much everything except for the idea that more M&A activity is forthcoming. That is NOT what is needed now. The sector is turning around, sentiment is changing, jurisdictions are opening up and policy is breaking exactly as LABS would need, and we're to be left thinking that we need to wait on a handful of clinical trials in the US paying up a few bucks for trial materials is going to win the day?
It's no wonder the SP is deflating, the energy and tone of the call was poor and didn't leave anyone thinking that the (apparently) numerous irons in the fire were going to do us good at any time.
Take half of the cash and buy back at current levels. That decreases to float by 25%. Nothing says shareholder love more than increasing their stake in the business.