My take on what was said was somewhat more pessimistic than what you heard I think.
First of all, they did speak generally of ways to increase shareholder value, whether it be through the sale of the company, a JV, merger, etc. Now any of that I really don't have a problem with as long as it increases the value of my shares. The question in my mind is why is this discussion arising now? Is the turnaround not there and are they still having issues at the plant? That is what I'm suspecting. Some of the discussion was about problems they're still having, but it was mostly talked like they were over the hump. As I recall Baldock made mention of $10 million dollars they could get if they needed it. I'm thinking they're running short of cash again and that's why they're talking about selling the company or doing these other things. DB gave them all this money and has a big vested interest in getting their money back so I'm thinking this action is being prompted by them. You noticed Baldock made mention that they weren't doing a distressed sale, which of course throws up a big, red flag about a distressed sale happening.
The other thing that was said on the CC right at the very end was one of the officers mentioned they were thinking about doing a share consolidation or in layman's terms a reverse share split. That was not a good thing to say IMO and probably the reason the shares have been selling off. Investors don't want to hear that right now and I think you know how that would all work.
IMO school still seems to be out on the turn around. If they can make it work without more dilution, then we should be O.K., if they need more money, then there may be more pain. We should be better informed by the next quarter. I just didn't get a real good feeling from the way I heard this CC.
I'm still hoping for good things.
AI
