Summary for the week: 44% fall from 89 to 50 cents. Congrats to the profit-takers who got out while the getting was good. This is a company with CEO/CFO that dumped shares at a market high immediately before the parent company got delisted in a scandal and last year paid themselves $1.5 million on $7 million revenue and $3 million net income. It seems the $1.5 million is for no-show jobs. Both guys are also CEO/CFO of another public company (Future Healthcare of America) and the CEO runs some sort of holding company/investing operation in Florida (yeah, he lives in Florida while the HQ for this 16-person company is in Pittsburgh). Oh, and did I mention the accounting arrangement? All of these public filings everyone is relying on were audited by a one-man shop in Utah that seems to have only this CEO/CFO as his primary client and (wait for this) was the same auditor who was in place when Libsyn's predecessor parent company (FAB Universal) was discovered to be a fraud. How about the Board? A bunch of nobodies who are long-time cronies of the CEO/CFO. One of them who appears to run some sort of print shop as a home business.
Come on folks, let's get serious here. Libsyn is a known brand in the podcasting niche and is a real operating business. But, this CEO/CFO are more likely than not just looking to extract value out of a business that they don't know the first thing about operating. Based on the filings, they don't even own many shares of the company. They certainly don't appear to be taking any steps to grow the company or protect its market position. As long as they continue to lead the company, I'm putting a 20 cent value on LSYN. If it goes below that, I'll consider it worth the risk. Anything above that is wishful thinking. If you're stuck with shares you bought above 50 cents, your best move might be to get in touch with the SEC, Justice Department, or some other party that can put these guys in jail or otherwise get rid them and free up Libsyn to generate its full value.
