West, I think you are wrong about AVCI, their cash will be enough for even three full years of burn rate of $60 MM or more, and they are making major efforts at cutting their overhead. Around $1 per share, even if you assume another four quarters of sub par (negative cash flow) performance and thus reduction of cash to $2 per share, it is a deal. The chairman must think so, he did his first ever open market purchase in the last few days at $2 and at $1.69, not much, yet real money. He does not need much since he has options at $.01 per share, he also exercised 50,000 of these very recently.
I think Mish is right and this one is going on my watch list, finally (it was off due to valuation concern for a very long time).
West, we had capitulation last week, you must not have been watching.
Zeev |
