Re: GENC
When I first saw your numbers I was thinking of a small medical or technology firm, which you often see in that position of having more cash per share net than the share price is. That is because the burn rate and skepticism about the future is built in.
GENC is entirely different. A heavy machinery maker In business since 1968, with all that cash, and no dividends? Seems like a shareholder unfriendly management. What a waste to have so much cash sitting there. I trolled the Yahoo boards and found this post, which has the ring of truth to it:
The real story with this company is that Sir E J Elliot has never cared for shareholders. Shareholders are simply a pain in his a__!, getting in the way of him taking a very profitable company for himself -PRIVATE. We witnessed this when he attempted to go private in around 2009-10 ,painting a gloom and doom picture for shareholders, offering $1.00/share in a promissory note(what a joke). Luckily he was not successful due to the actions of individual investor, Harvey Houtkin ! His so called INDEPENDENT BOARD, consists of his handpicked buddies who allow him to do whatever he feels to enrich the Elliots. When a real independent individual Lioyd Miller III became a member of the board, Mr.Elliot made it unbearable for Mr. Miller to stay on and unfortunately Mr. Miller resigned. During his short tenure we saw the stock price soar to nearly $31.00/share!! Mr. Elliot being 83 years old should have gained some wisdom by now in doing the right thing for shareholders. The stock price should be around $18 to $20/share but his ego, pride, selfishness, and stubbornness still gets in the way of clear thinking and stagnates the stock price! When Jr takes over the company hopefully, he will see things better for shareholders. We will have to wait until then.
So what it boils down to is family management that is not shareholder friendly, and seemingly a bit stupid too. Sad. I think I will pass on this one. |
