iMarketing Solutions Group Inc. C.XDM

Why is this stock so cheap?

[stockboy72]

If you average out the EPS over the last 10 years to get
.05 for this company. Using the current valuation of the overall US markets (which is about 20 times the last 10 years average EPS) this stock should be trading about $1.00.  Business liquidty levels look fine and so does its debt levels.  What is the deal here?  Is this stock just flying under the radar of most investors, and that is why it's so cheap, or is the company planning on going private.  Private companies have much lower valuations by comparison to public companies which could explain why it is trading at such low valuation levels.  Any thoughts?

[FredT1]

Well, there are a couple of things that come to mind.Back in 2003, there was a botched privatization attempt.  The company was to be sold to a US investment firm for $2.00 a share.  The buyer walked away and claimed expenses from the company ($1.8 million), the company sued for breach of contract demanding either specific performance or $50 million.  The case is dragging out slowly.