Replies to post #102265 on Savvy Trades and Investments

[hweb2]

I think BSQR is an attractive balance sheet play. Although the stock could remain under pressure through yearend with tax loss selling. Hopefully they can get close to breakeven by Q2, and still have $1.60-$1.70/share in cash left on the books. They had a filing last week about reducing their headcount by 20%-

On December 5, 2022, Bsquare Corporation (“Bsquare” or the “Company”) enacted a reduction in workforce plan (the “Plan”) as part of broader efforts to align the Company’s cost base with its 2023 strategic and operating priorities. The Plan is expected to reduce the Company’s headcount by approximately 20%. The Company estimates the aggregate restructuring costs associated with the Plan to be approximately $0.2 million to $0.3 million, primarily consisting of severance payments, employee benefits and related costs. The Company expects to incur these charges in the fourth quarter of 2022 and the first quarter of 2023. The Company expects the reduction in force to be substantially complete by the first quarter of 2023, subject to local law and consultation requirements, which may extend the process beyond the first quarter of 2023 in certain countries.

[hweb2]

Rebuying a few BSQR. Popped up to the $1.30's in February. I still find this balance sheet play to offer an attractive risk/reward profile below $1.10. Probably no rush in this stinky microcap market as the next couple quarters will likely be losses. But BSQR announced that 20% headcount reduction in December 2022 in an effort to get to breakeven from operations. Hopefully they can get there by the middle of this year. If so they'd be sitting on $1.50+/share in cash with no debt, and earning at least .01-.02/share per quarter just from their cash horde. Stock would re-rate closer to $2 imo. They're also doing a $5M share buyback.