Look at the overall market - a bad day. Also, some people may trade the stock. Third, there may be some nervous investors, scared of overall market not doing well. Fourth, the co is not at the front of investor's minds (but wait for more deals and see what happens).
Next quarter should show more revenue growth - rem this is like a new product line MSH did not have before - incremental revenue.
Only a matter of time before ppl notice a co having revenues and net income growing strongly - only negative is the share price being so low, perhaps the investment guidelines of some funds (mutual and pension) do not allow purchasing stocks below, say, $2.
I'd like to see a share buyback with some excess revenues ie. an actual share buy back. Suppose the co can generate an extra $500,000 of cash flow and buy shares at an average cost of $1.50 (MSH should be strict and not buy if shares rise above some level ie. buying only on dips, and thereby providing some support for the share price).
Then, $500,000 / $1.50/sh = 333,333 shares. Would be nice if they could retire the shares.
With 30 million shares, the individual investor isn't going to move the price up with their demand, especially since it's Cdn investors only (hint MSH, would you list on the NASDAQ). So, we may be at the mercy of the institutions.
Buying the stock at $1.50 or below I've got to think is a good investment for MSH relative to competing 'projects' for use of MSH's capital. $1.50 could be worth $3.00 within 6 months (or sooner). That's a 100% gain and may be better than deploying the cash for some other use, unless that cash cost generates significant revenues such that an ROE looks like some 500%+ ROE and quickly - rem I'd rather have a 100% gain in 3-6 months than a 500% gain if that gain takes, say, 5 years.
Maybe the above will been seen by some analysts out there and get them off their duffs to look at/take another look at MSH. And maybe they'll provide some dialog here.
It sure isn't that difficult to build a cash flow model for MSH, factoring in the assumptions, doing some sensitivity and scenario testing and see that MSH have several booster engines going for it. If I were MSH, I would rather see them spend their cash on a share buy back/product initiatives versus paying some investment banker.
Also, if there is to be a banker (or equivalent) to shop MSH, I would not pay a banker and consulting fee, etc. rather only pay a banker if they produce ie. find a buyer and I would shop around for a banker with a reasonable rate vs paying, imo the exhorbitant fees of typical investment bankers. Pay for performance and reasonable pay. Provide an incentive based on eg. buyout price.
Go MSH - the larger you get, the more clout you'll have ...and it looks like you are headed in that direction. |
