Grease - Let's play devil's advocate for a minute (something I am comfortable doing. BTW - the devil is right more than one might care to guess, especially in the penny world.).
Let's assume management owns 20+%. And let's assume two small funds own another 14+%. So management calls up the two funds and says I have a deal for you. The stock price is not a reflection of our value. Let's take this private, we'll set up a management company and we'll run the company as if we own all of it.
I have seen this many times before in the penny world, so let's not say it can't happen. They delist the stock. The two ownership groups form a management company which the rubber stamp board approves. The management company A)sucks the cash out of the company, B) lays claim to nearly all future earnings and C) awards themselves huge amounts of stock for doing such a good job managing the company.
Shareholders continue to receive their regular dividends ($0). They continue to have no say in the company. The company returns zero phone calls from investors. Small investors can attempt to sue at the their own cost but will not because A) they are unorganized, B) their investment is relatively small, C) no lawyer will take the case on a contingency basis (tried this before - not a single one), D) their chances of winning are small and E) the SEC will never, repeat never, help a small investor in a case like this.
Don't think it can't happen and that may be one very good reason why the stock is declining. It is pure speculation on my part that this is management's plan. I am simply pointing out that the CEO has taken an initial step towards becoming untouchable. He may go no further. But if he does, you can all convert your shares to worthless wallpaper for a doghouse.
