I think those who sold out or are considering selling out are making a big mistake for several reasons.
1. At ~50 cents a share it isn't worth much anyway, why not let it ride?
2. Things ARE looking better than they have in the past. Spinergy up'ed their order. Golfsmith is selling shafts. Orlimar golf is using the shaft in their clubs. So is Austad. We still have the TM deal potential. We're selling hockey sticks like crazy. And other product potential in the future.
3. IMO, the last quarter was a good sign. They got rid of alot of the liabilities hanging over them (lawsuit, lion golf, wimbledon). Quadrax sales did increase.
4. The ~50 cents gets you Victor as well. Worse case scenerio, they divest/bankrupt the sporting goods division, you still own a $20m in sales electric cordset co. Is it great? no. Is it terrible? no.
Don't get me wrong, though. This is a high risk investment and management hasn't proven itself yet (argueably the opposite), but I think things do look better now than when I made my first purchase in the spring of 95. It was pure hype then, it is hype mixed with a little results now.
Just my two cents,
Brent |
