Astrotech Corp. (ASTC): The current valuation seems to be below...

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Re: TechKim post# 2103

Thursday, 10/30/2014 5:53:37 AM

Thursday, October 30, 2014 5:53:37 AM

The current valuation seems to be below the cash on hand. Normally, that would be bullish but:
- the company has no significant revenue generating business any more
- It's not known how much overhead (SG&A) will decrease as a result of the sale
- CEO has a history of being very generous to himself with cash and stock awards
- Company has accumulated losses of over $150 million, and that's with a business that was actually generating decent revenues

I don't see the price falling a lot, unless the CEO goes really crazy with spending, but there's probably not a lot of upside in the near term until there's some indication as to whether 1st Detect and Astrogenix become anything.

My greatest fear is that the CEO acquires some other business to justify salary and overhead and that gets poorly run like the core space biz and takes the stock price down.

I'm holding for now.

I AM NOT short this stock.

"The world is a dangerous place, not because of those who do evil,but because of those who look on and do nothing".
Albert Einstein

"While Ignorance may be bliss, it's a very expensive bliss."
Kez