I first heard about this company via a "tip" from a friend of a friend. This "tipster" definitely had intimate information regarding this company. In fact, he/she (not necessary combined, but possibly) would tell us how this company is basically being conditioned to be sold, and how Dugas no longer wants to be in this industry.
Now, assuming this true. It can certainly be argued two ways.....
1) If Dugas doesn't really care and just wants to turn around and sell the company, he is certainly making it attractive at these levels. Any potential buyer would be paying much much less than if the company was profitable (30 million in revenue and a market cap of 3 million). This is also assuming that controlling stake can be obtained via an equity buyout.
2) If the cap was much higher, Dugas' shares would be worth substantially more (more beneficial for him and shareholders); however, any potential buyers would be limited due to the need for much higher capital. They wouldn't get the "deal" they are getting at these levels.
Certainly, Dugas's actions as of late would lead us to believe that the PPS is irrelevant.
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