Shu-li,
I guess somebody is trading, just not me. I've been trying to talk to Reggie, but I can't get through to him. I know that they are really busy down there, so I guess thats good. The main thing that needs to be stressed to him is that he has got to get better at talking to us shareholders through PR's, and cut down on the phone calls.
I did talk to Joe Rzepka, and it sounds like it is possible for them to become profitable with their current revenue sources, if they can improve their nursing home revenue margins to %7.5-%10, which joe thinks that they can. Also, the reason for the interest in mergers is that they are having a lot of trouble raising capital for growth. I think that if they can get profitable, they might stand a better chance of getting a new line of credit, in addition to the two that they have drawn almost all of the way down($3-4M). So until something happens, we WAIT!
Kevin |
