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Jim, I agree with your analysis regarding the fundamental value of the company. At the current price level, this is a relatively "safe" investment under the current market environment. I am particularly impressed with the quality of some of their alliance partners such as NTT, Tech Data and PSINet. This is a reflection of the value of their products and technologies. I suspect the reason the company is still around at the current price level (i.e., not already being acquired) is that the board simply refuses to sell at this price. I remember that the former CEO had lined up several potential suitors (the names mentioned include CrossCom, HP and DEC)and was let go because the board refused to sell the company. The problem with Proteon, IMO, is poor execution of their business strategies and plans. In the last several years, they have gone through several corporate restructuring plans and this would not help staff morale and profitability. However, at the current price level, I am willing to wait. They do have a good balance sheet (which however is deteriorating fast), good products and technologies and good partner alliance programs. Let's hope the CEO's prediction of turning profitability in the first half of this year comes true. Tiger. |
