I am puzzled myself. I thought for quite some time, ULBI was depressed because of the financial problems at VLNC and when these seems to have been removed, ULBI is allowed to float a little above book value. Frankly, I think that between the two, ULBI is still the undervalued one, but the break through $7 in VLNC creates enough momentum there, and the two orders help as well. Once we see sales rate in the $70 MM annual rate at VLNC one can start and look at profitability, and like ANCR, another "healed floorless", VLNC could start and be valued at few multiples of this sales rate in the future. LITH, I am not following at all, I looked at it earlier this year, but it looked to me like a "vapor company" and thus decided not to continue my "look".
As for the party, the long have good reasons to rejoice, the badits gambit only paid partially and did not result in a full spiral. Yet, suffering for almost a year under the cloud of that floorless and only recently adnmitting that CC might not be so friendly might have cost many longs on margin an important part of their assets if they were forced to sell when the stock was brough under $5. As I said in my last post there, a better buy was on the breakout above $7, when it became clear that the bandits full gambit will not come through.
Zeev |
