In general, I agree with Rod in that I think the CEO bounce is over and BORL will settle back to around 6. I also think that the new CEO might be able to bounce the stock up with some significant layoff announcements.
On another but related topic, a few weeks ago, there was a conversation on this thread regarding a fair estimate of BORL's book value. I commented extensively on how to calculate it, and there was a discussion of how BORL was carrying their office complex at a much higher than fair valuation, which was they claimed was worth something like $150 MM ( I think that was it - don't have time to go back and check the deatils, sorry). THe point here is that there was a signficant article in the San Jose Business Journal the other day about this complex. It is a total white elephant. The article reported that the complex has been on the market for several years, with no takers. In fact, BORL has just given up trying to sell it, and is now going to try to rent some of it.
So, this is a big hit to the book value. THey may carry the complex at some huge premium on the books, but if you can't even get any offers, then clearly those numbers are wrong. In fact, I would bet the new CEO will change that on the books ASAP so he won't get hit with a lawsuit claiming false valuation of assets.
I would short this stock at 9, but it may never get there. |
