Replies to post #7088 on Value Microcaps Motherboard

[stanu78]

Hweb,I now remember why I didn't buy DAOU back...

I talked to their CFO after the big drop from the .90s range and found out that there are some preferred shares outstanding. I don't remember if it's $10M or $20M but the point is at that time I calculated the book value which is negative after the obligation on the preferred shares (which has higher liquidation over common and can force liquidation/force DAOU to buy back the shares at a high price). I remember afterwards the option to force DAOU to buy back the preferred shares were terminated (and at a high cost too, but still better than having that option not terminated)

What do you think? I don't think I'm going to buy them, since I know from you that they have non recurring item that help them break even. (plus the preferred shares that is not easy to see from the balance sheet)

Stan