my take on the call is s$hite happens.... downside is that $8 mil rev pushed back to the time period i hope to sell which is when significant halo biz starts to impute into share price which is prob early calendar yr 2021.... this assumes biz keeps running while this covid-19 crisis is going on... i think avids clients will be ok with respect to ability to pay and commitments..
folks still need cancer meds and the meds avid will manufacture will let them take it at home...
at the same time i think mgmt has no problem shaking out retail investors and benefits with low share price for the time being.... good time to hand out employee options and then let it ride... certainly helps employee retention when employees have a nice chunk of equity not vested... the old regime was quite top heavy handing out options to themselves
and any acquirer will benefit from this extended SP downtime that mgmt signaled...
looking at the financials, employees are buying... haven't studied details but activity is there
good opportunity for a thermo fisher type player to come in with some equipment and equity investment in the company... a couple of BOD members sold biz to TMO.... one would think the topic has come up...
at the same time hopefully pressure is coming from investors and clients that after the Lias BS/prod crap and other employee turnover, this horse needs to be in bigger hands.... my guess is that when the value investors see the inflection point, they may want to sell and the best price would be with a sale.. these guys are not coupon clippers... find a fixer up and get out.... i am sure many of them had quicker exit plans ......a production miss of $8 mil is not going to tube a TMO, if workers or mgmt talent is needed, a TMO type can fill needs... my guess is that this is an ongoing discussion or should be....
worse come to worse this is bought out at $8 to $10 imo... most of the investors in the game now would make a good return and in this mkt they would prob take it... this assumes we are not in zombie land in the next 6 to 12 months
all imo
