I agree, but I have no answer for your question. I spoke to Selwyn for a few minutes today (that's all the time I had), and clarified that:
1. They have 13.2 million shares outstanding at the moment, and $19 million in cash, so about $1.50/share in cash. (I can't recall, but I think BV might therefore be about $3.50? So you can buy for 70 cents less than BV right now. Fantastic. If the losses continue at the $1 million/month that you claim - I haven't calculated that - we could lose about 8 cents a month in BV until things turn around, which isn't that much and won't be for that long, hopefully.)
2. The burn rate should be dropping since they are serious about restructuring to create a profit, now that they have boosted revenue; one of the ways they will do so will be to focus their efforts on the more profitable product lines, and
3. They have a much wider range of product to choose from with their acquisition of Alpha, which turns out to have been an excellent purchase.
4. Because of restructuring costs, they are making no secret of the fact that they expect a Q1 loss; Q1 results should be released in mid-May, about four weeks from now.
Since Q3 will be profitable and Q2 will therefore be probably flat, I'm beginning to get a vision of a nice saucer shape here, a field hockey stick, a sort of mirror image of a check mark, which I love to see...the instant it starts to form, you're going to see me start averaging down like nobody's business... |
