Howdy! I just took a smallish initial position here today.
I spent a couple of hours looking thru the filings and this stock looks to be about 10% undervalued at the current price. That's based on the assumption that the estimated share structure numbers are mostly accurate.
It also appears that they just paid off some relatively low-quality debt, that could be converted directly into shares, and then exchanged it for some higher-quality debt that is based on warrants exercisable at 50 cents. It seems to me that this move further stabilizes the share structure. It also creates a potential overhead resistance level at 50 cents. However, it also means that, over the longer term the PPS is going to move to 50 cents. And whomever took on this debt position, apparently, also would agree with that premise. Otherwise why would they accept warrants so far out-of-the money?
Of course, the big question is: When is it going to 50 cents?
Obviously they have some more work to accomplish in order to move forward. But it looks like they have a descent handle on their debt situation. That's a big plus. And the filing makes it clear that they are still doing the R'n & D'n up their in Grass Valley. And I know from direct experience how expensive that is. So it is not likely to happen real soon. That make this a longer-term play from my viewpoint. And right now seems to be a good time to get in, which I did.
Overall, this company is well positioned to take advantage of the current energy crisis, which is going to last for years. This is just a wild-ass-guess on my part, but I'm seeing a $2 share price in 5 years or less.
Happy to be on-board here. Good Luck to all Longs.
bbd
