Replies to post #78283 on Avid Bioservices Inc (CDMO)

[purpledawgs]

Geo:

I still think the company should take on some debt and announce a buyback at these levels. Why couldn't they put out a PR saying they believe that the company is extremely undervalued so they have decided to buy back $5 million worth of shares. At these prices, they could buy back 8-10% of the company. Just a few years back they obtained the ability to borrow up to $10 million. I think they only borrowed $5 million and then paid it off. I think telling the market you would prefer to incur debt for now, turn off the ATM, and actually buy back shares would send a big message to the market. It would say we definitely think the company is going higher, we are buying back shares now, and they could always sell the shares later above $1, and generate more net profit then they make with Avid in a quarter.

What am I missing???? Is there something that prevents a company from doing this? Why can't ES get this kind of money from Roswell Capital Partners? Seems from a google search that Roswell gets a lot of $5-10 million funding deals.

IMO

pd

[cheynew]

You are absolutely right about the one vote clause in the bylaws. There is literally no way to get them out unless they die, resign, or get cut off at the knees by filling out the empty board positions with independent directors to outvote them.

[ubuy2w]

It takes a proxy fight. Someone or group to nominate a separate slate and change board and management. With no large shareholders and the largish expense of a proxy fight chances of one succeeding slimmer than a sustained rally in pphm,s stock price. The problems at the board level which is the reason I have been unwilling to own this thing for more than a week or two at a time.