Hi Jaime...
Unfortunately, Ms. Fiakas has almost no credibility in the stock, particularly in light of the recent TFS fiasco, where corporate managers "bagged" her along with everyone else whom they had been speaking to.
In fact, I believe that part of Simula's market related "problem" comes from the cross ownership in the two securities. Not *all* the problem, but *part*.
At the current market price, Simula's total common capitalization (assuming full dilution of converts) is approximately 12 million common. Hence, the company is valued at about $110 million. Thus, it is trading at approximately one times revenue...dramatically expanding revenue at that...and less than ten times the most probable earnings outcome for 1999.
In addition, at the current valuation, the ITS division *alone* is worth more than the entire capitalization. On this stock, the market is "upside down."
Debra...if you're listening...we don't blame you for the TFS fiasco. Management either didn't see it coming (stupidity in my view, particularly since this sort of problem had happened to them before) or lied (after all, how could conditions change that much in just a couple of weeks?).
And, it is more a reflection on them than it is on you.
Have a good day. |
