Hey nealg- you are sorta right- yes, a small company with one approved product is extremely vulnerable to the cross channel currents of competition and the gov. purchasing system for security products.
The market doesn't care about ISC revenue, the care about ISC's type of debt. Since ISC has many types, all overweight, the convertible debt is the wall that the market has no desire to climb.
As my esteemed colleague Zeynoc has pointed out: many successful companies carry large debt loads. ( two points of comparison to Zey's statement: ISC is NOT profitable and the convertible type of debt is way out of balance).
I think longs are tired, but the last CC provided hope. Hope that mgt. stops the daily dilution and does something to cut the flow of shares into the float.
The interest expense, in relation to sales or almost any other positive metric is upside-down. Can this mgt. team do it? Don't know, but I do know, the month of December, after TSA delivery agents leave with B-220s-- that's the time a deal can gel and set things going in a forward motion.
One odd positive that begs interpretation: ISC is cash strapped, trapped under a huge debt rock, yet mgt. gave out substantial salary increases...would they NOT be fools if they didn't have growing revenues to counter-balance that? I'm not talking 14M/qtr, I'm looking at 20M+/qtr.
