So my expectation two weeks from now goes like this. Yes, they will have some cash on the balance sheet but perhaps not a whole lot. Perhaps $5M. And we will get EPS close to $1.18. A/R will still be high and they still believe they can collect all of it.
I think they are acting as a bank, offering good credit terms, to some customers at least. To gain an edge and become a preferred supplier or whatever. Perhaps we will see revenues improve a bit because of it. That has to be their main focus, getting revenues up because of this excess capacity.
They know, and I hope they will address the A/R, cash position and plans for a dividend. It matters what they plan to do, although perhaps they can't say too much. I can't predict how much of those past due receivables they have collected AS OF TODAY. But I hope they will address it.
So it may not be a complete win, for now, but good enough I think.
I wouldn't want to be short this stock.
