NMTI Huge reversal started yesterday, volumes, 0.05 eom?
NMTI 0.016 AFTER -95% INSANE YESTERDAY DD FREE MONEY 10X BET IMHO NO "Q" STOCK" STILL A LOT OF ASSETS TO SELL. GROSS MARGIN ENOUGH TO SATISFY CREDITORS CLAIMS (BASED ON 2009 DATA)
NMTI -90% OVERSOLD, PLENTY OF ASSETS, OS 16M, MC 300K, ASSETS WORTH BETWEEN 10 AND 20 AT LEAST, CO. WAS INVOLVED IN PH3 TRIAL FOR STROKE DEVICES.
co. sells devices, top line results weren't bad in last 3 years: profitable annual revenues were 27,18,13 mln $ respectively in 2007,2008,2009, but co. performance negatively impacted by R&D costs for new devices and SG&A.
Gross margin was 21.7,12.0 and 7.8 mln $ respectively in 2007, 2008, 2009.
it was trading at .15, mc 2.4, an implicit liquidation value!
now company is in assignment procedure, a formal liquidation, assets will be sold in orderly manner, by a deputy assignee.
Their value is well greater than 10 mln $ liabilities, creditors will receive the most of collectable money from asset sale but not equity; equity will be left to shareholders, a shell may not be worth less than 500/700k $, maybe shell will be left with some IP assets and of course with no debt, only 16m os, the ideal shell for any RM.
Yesterday sell off was limited, only 4m of 16m were sold, because investors and insiders know that NMTI, ex 24$ nasdaq stock, was already trading at liquidation value before.
Co. tried in last 2 months (avery short timeframe!) to merger, sell assets, get financing, but failed.
Now assignee will assess the genuity of liabilities and claims by creditors, will take all time to seek best proposals for asset sale. This is not a bancruptcy, no "q" stock.
Yesterday stock bounced hard from lows at .01, heavy buying pressure in last hour, intrinsec value is at least .06 or 1m $ market cap.
PPS now is a gift, shell surely for free, shareholders may perhaps still recover some $$$ by asset sale.
I'm in at .02 for the long run, I think that this liquidation is such a robbery for certain aspects, because only annual gross margin may pay all debt due to creditors.
Co. still owns significant IP, that's the greater asset.
Remember, co. hasn't short/long term debt, only trade accounts payable.
During an assignment procedure some suitors may bid for assets, creditors being fully paid, left value to commons (no preferred shareholders here).
Look at this post found in YMB, very well done.
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Reasons why selling today is not smart 20-Apr-11 12:49 pm
* During the liquidation process, assets may be larger than obligations and shareholders will receive some compensation
* Market cap is only 200K and can be used as a shell for another company or continuation company by the creditors
* Some institution shareholder believe that NMTI will rebound and therefore today volume is only 4M vs. 18M float
* A class action will recover unjustly lost value in NMTI.
* NMTI management mislead shareholders by not warning them of a liquidation eventuality.
*Lack of finality with the common stock will drive the stock to much higher price
* The stock will not be cancelled. It will trade like a zombie for years. And as result will spike frequently
Rating : (1 Rating) post by hbenporat
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NMT Medical, Inc., a medical technology company, designs, develops, manufactures, and markets implant technologies that allow interventional cardiologists to treat structural heart disease through minimally invasive catheter-based procedures. Its product line comprises CardioSEAL, a cardiac septal repair implant device used for the repair of structural heart disease and intracardiac shunts that result in abnormal blood flow through the chambers of the heart; STARFlex, which incorporates a self-centering system that allows the implant to self-adjust to variations in the anatomy of a septal defect without deforming the septum or interfering with heart valve function; and BioSTAR, a bioabsorbable patent foramen ovale implant and biological closure technology. The company also develops BioTREK, a biological closure technology, which incorporates a biosynthetic material that uses the body?s own regenerative capability to restore function naturally. It primarily serves hospitals, clinics, and other healthcare centers. The company markets its products through distributors, as well as directly in North America and internationally. NMT Medical, Inc. was founded in 1986 and is headquartered in Boston, Massachusetts.
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strong buy, only NOL's worth 3$!!! 29 second(s) ago Sentiment : Strong Buy
0.05 next week, market cap at .05 means less than 1mln $, the minimum value for a shell, with no debt, some assets (non material)
add to this nols at least 50 mln $ or 3$ per share!!!
ok tax loss recovery is limited because of no change of control needed, in other words company shareholder base must not change in order to offset potentially 50 mln $ net income with pregressed losses, but if a change of control happens, due to RM, the nols are recoverable in part.
The equity is owned by shareholders, the nols also, 1/2 years of sale and creditors will recover all money owed to them. Gross margin was 9 million $ in last year, may be 5/6 in 2010 (but we don't know officially) so I think creditors will be fully repaid.
The shell, with only 16 million OS and 50 mln $ nols is a gift at .02.
PPS will stabilize around a nickel or dime, for sure.
Then it will spike frequently due to asset sale news and RM rumors.
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1)NO PROCEEDS FOR COMMONS NOT SURE! MANAGEMENT MUST "PROTECT" COMMONS FROM SPECULATION, CAUTIONING THEM THAT THEY COULD NOT RECEIVE NOTHING.
BUT THAT'S THE WORST SCENARIO, ALREADY INCLUDED IN PPS. INFACT PPS DISCOUNTS ONLY THE 25% OF THE REMAINING SHELL VALUE (1M $ THE TYPICAL MARKET CAP OF A CLEAN SHELL WITHOUT DEBT, TAX CREDIT ASSETS, PERHAPS IP, VERY LOW OS...OR .0625$, WHILE CURRENT MARKET CAP IS LESS THAN 250k $!!!)
2)NO PROCEEDS (FROM ASSETS LIQUIDATION OR ASSIGNMENT) FOR COMMONS DOESN'T MEAN NO LEFT VALUE IN EQUITY! CREDITORS ARE OWED THE ASSETS, NOT THE EQUITY AND THE RIGHTS OWED TO EQUITY HOLDERS. IF SHELL R/M, OWNERS OF EQUITY WILL BENEFICIATE, NOT CREDITORS ALREADY FULLY REPAID. ASSETS MAY OUTWEIGH LIABILITIES, THIS IS N0T A FIRE SALE, BUT AN ORDERLY WIND DOWN.
