Ironically, we may see a rise in the price of COTG.
By ending some of the more ridiculous lines of business, and by downsizing, the company may actually see its share price go back to 15 cents based just on its huge cash flow, and the promise that one of its divisions (subs) might catch a wave. In fact, but for the problem discussed below, COTG looks better than many small caps trading for 50 cents or more. Will COTG get to those levels in the near future? My friends in the investment banking community are quite familiar with COTG, and there is a consensus among them that COTG is like a diseased company; until the needed medicine is administered, it will remain on the sick company list--but not due to its operations or results.
The problem was and is that the CEO is a greedy pig who puts his own self interest ahead of the company's. Savvy investors have reason to fear pigs, and therefore, while COTG appears to fit the criteria an aggressive fund manager, it seems obvious they are generally turned off by the pig.
Ditch the pig, and in 6 months, the stock would jump. But the pig made it quite expensive to remove him from the trough; but perhaps it is more expensive tot he shareholders to keep the pig fat. |
