I thought it was boring. All the questions were from analysts, asking about the business. No one asked about management's silence in the face of the stock's collapse. If I am correct that they have loaded every possible loss into this quarter, then they should be profitable in the future, as they said their sales are continuing. Of course, it depends what changes the English government will issue, if any. Also, I think they said their profit before the charges was only about $8 million, which would be 20 cents a share. Perhaps they are no longer being as enthusiastic about booking future profits, as they had been running about twice that.
So with a book value of $4.70/share, and profits that may only be 80 cents a share (total) for the next four quarters, what is the stock worth? Certainly book value, and maybe much more.
I do think this stock's fall is overdone. Of course, if the stock price remains depressed for a few more months, then the conversion of the Series B at this low price will add significant dilution. |
