CBA Florida Inc. (fka CBAI)

[worthylion]

I think Red Oak has been clear about its intentions to sell the company and has hired an IB to run a sales process. What they can't be explicit about is their intention not to close a deal prior to mid May so as to get long term capital gains treatment on their investment. Even assuming significant expense to a buyer to pay off debt, honor golden parachutes etc, $2.6 million in recurring revenue is worth multiples of current market cap. The only risk I see is the possibility of a broken auction where Red Oak doesn't get a minimum offer it considers sufficient to trigger a deal. As their cost is only .19 per share and there's risk in continuing to hold a company with no management or operating momentum, I think it's very likely they will choose to accept the best offer that comes out of this process.