Post by
Rawliekins on Aug 10, 2014 4:15pm
Inefficiency and Greed = Devaluation
I think Jenny and Roscoe are both right on this one. Roscoe notes that inefficent management (bad technical decisions) led to a lot of a shareholder destruction. Now greed (keeping jobs) is leading management to give away the company for a song, or at least way below NAV. "Manual of Ideas" adherents would think management would faster consider a total asset sale in this scenario to liberate the $1.80+ per share value. But liquidation ain't happening since that would have been in the best interests of the shareholder, so now all long-term investors can do is look at this as a "special sit" as Jenny is doing. A 45-50 cent exit would be great for the special sit investors who came in at 12-15 cents, but since management is not engendering Mr. Market's trust, let's wait and see if this thing will hit 19 cents. I think to get to that floor, more information about this deal will need to be released, as Roscoe says.