The meeting today was, IMO, quite successful. All proposals and the nominated directors passed by wide margins. Greg Horton (CEO) gave a very detailed presentation on the company's history, market environment, blue chip client roster, prospects, factors affecting the stock valuation, etc. Those in attendance seemed quite receptive.
There is too much to recount here (at this hour) but a few important items are 1) they will be changing the company's name to SMTEK INTERNATIONAL sometime this summer (with a corresponding symbol change; 2) there is likelihood of a proposed reverse stock split at some point to get the price up to levels where institutions would feel comfortable investing again, albeit in conjunction with an accretive acquisition or other favorable news; 3) the extensive SEC issues involved in the Jolt acquisition will result in a significant one-time charge to earnings in the current quarter, but have somewhat cleared the decks for future acquisitions, and 4) Greg noted several times the need and desire to get the top-line up to $100MM quickly through both acquisitions and organic growth in order to bring more of their excellent gross margins (currently around 18%) down to the bottom line.
Things seem to look much brighter going forward and the stock action Friday and today bears that out.
I'll try to post more information from the meeting in the next day or two.
Good luck,
Chris |
