Well we now know...absolutely nothing new. Strategic alternatives has been mentioned before, cash position could have been estimated at its current level quite easily. And...what else really matters at this point?
Page 18 & 47 of the 10k were interesting...18 uses a lot of vague language as to not mislead investors (so shorts could try to turn this on longs, but in reality the company must use that pessimistic language to protect themselves legally) but I feel it basically screams for a buyout. They got rid of the whole sales/marketing team last year after the CRL so as we already knew, they aren't prepared to go it alone in the slightest. Page 47 because it says $6M has already been paid this year out of that nice Dec 31st cash amount. Forgot what page number the lawsuit talk was on, but that might be a hinderance for buyout timing (there is an ongoing lawsuit I wasn't aware of tied to the decrease in share price from the CRL last year).
I feel as though at the current price, a positive return on your investment is inevitable. The question is how long you are willing to tie up your capital waiting for that return. If we go anywhere closer to $5, I'm rebalancing my portfolio with a much stronger position in Chelsea. I don't do a lot of "trading" so I'm personally ok with holding and waiting. Maybe some covered calls...but I don't like capping my returns for a measly option premium especially with this potential.
One little thing to keep in mind: what do you do before you sell a portion or a whole company? Trim the fat (reduce staff/expenses/etc). Chelsea was forced to do so last year, hence the reduction in staff and burn rate. They're perfectly set up to be bought...let's just hope the price is right and it's soon!
If anyone is short and has supporting facts, or at least a persuasive argument (even a devil's advocate who meet the aforementioned criteria), I'm all ears.
Good luck boys and girls.
