Leatt Corporation, Inc. (LEAT)

[blueskywaves]

When I look at a stock I usually start off with the assumption that 50% of the stock price is driven by the state of the economy, 30% by the state of the industry and only 20% by the company. At this particular point, I would put it at 70% economy, 20% industry and only 10% company. It's just a mess out there, folks! No matter how good the company is doing, it just can't avoid the chain reactions happening in the global economy that are seriously distorting the supply and demand for this stock. It doesn't help that the company trades on the pink sheets or that management seems hapless in selling their story.

I think that management is seriously considering taking the company private and waiting out the secular shifts in the global economy as a private company so that it can have clean start as an IPO in a few years without the stench associated with being a pink sheet stock. They're profitable and cash-flow positive so they can pimp up their financials in private. Compliance with Sarbanes-Oaxley is also very expensive for a tiny company.