Here's a risky, but maybe not too risky play
CEON
Will cease operations and liquidate in November.
My best guess on liquidation value is;
Liquid cash & receivables 6,889,000
Plant & Equipment at 25% 1,221,000
Less liabilities -2,617,000
Less overhead -1,523,000
----------
net 3,970,000
or 0.56/share, now onsale at 0.28-0.40
On the equipment, they may be able to sell for substantially more, since they already took a write down of 3.5 million to reflect actual market value. They also wrote off 2.85 million in receivables, which they may recover some of.
Probably today is too soon to buy it, news just out yesterday. Maybe wait for 0.10 or less.
At least management appears to be honest, they could have just started printing shares to keep the thing going. |
