The catalyst could be a buyout. I owned a stock...FLD that sat at $1 on the amex with no liquidity. You couldnt sell.
Then, one day, out of the blue, a buyout for like $2.50.
MHCO is not losing money in the last 6 months or last 12 months. They had a bad quarter.
They have a book value of $7.35, net current assets of $2.25 and had a low P/E untill recently.
Excluding the extraordinary charge, MHCO earned 15 cents for the last 6 months.
Not bad for a $2 stock.
Finally, MHCO is going to continue to report.
William Riley, Chairman and CEO of Moore-Handley, commented that "the Board took this action to free management from the significant and increasing administrative burdens and expense of remaining a public company, particularly in light of the recent rules and regulations promulgated under the Sarbanes-Oxley Act of 2002. This will allow management to focus on growing the Company's business, which is in the shareholders' long-term interest."
The Company anticipates continuing to make financial information currently available as necessary to enable its stock to be traded in the over-the-counter market (the "pink sheets"). Mr. Riley noted that "given the relatively light historical trading in the Company's stock, the Board determined that delisting from NASDAQ and shifting to the over-the-counter market should not greatly inconvenience our stockholders." |
