As best I can tell, iGourmet is a mini version of IVFH. I feel absolutely comfortable that IVFH can turn this around. There should be significant synergies offering plenty of opportunity to cut costs and push new products to existing iGourmet customers. This is not an issue IMO.
The issue I referred to is that I am firmly convinced that Sam is preparing to take the company private. He is increasingly running this as a private company. The board does his bidding. We've seen that. There is no voting because management and friends owns the majority. There are no more conference calls, because, well just because. He doesn't need to have them and so he won't.
The day will come when all these people thinking this is worth 15 x PE or $2 to $4 per share will awaken to see a leveraged buyout at a price that they will not be happy about. And that's it they are lucky. What if Sam just decides to run this as a private company for the next 20 years without ever buying the minority shareholders out? How will that change from today's relationship? Hint - it won't. Nothing will change. It will look exactly like it does today because that's what is happening.
You can find a lot of things to say about Sam, but dumb is not one of them. This is financial engineering. I believe Sam is going to find a way to acquire those outstanding shares from the former Fresh Diet owner. Whether he buys them or he returns them to the company, it doesn't matter. His cohort will own a larger percentage of the company and his authority will be even that much more absolute.
This is just my opinion, but I think this process was confirmed when the director resigned.
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