Dale, re. ERGO and <<the downside seems to be nonexistent>>
Well, I can imagine more bad news. Here are two possibilities:
If the stock trades below $1, as it already has, then the co. can get a delisting letter from Nasdaq. Either the stock must stay above $1, or they must do a reverse split, or get delisted. So a risk you and I face is that one of these things could happen, or be announced by the co., before January is over.
Moreover, I recall that a director and an officer resigned in the recent past. My experience with broken stocks is that bad news is often followed by more bad news. Which could be announcements of more resignations.
re. taking the co. private, I wonder if this has ever happened before, for a co. with no significant operations but selling below cash.
Another possible outcome is that mgmt. will want to continue running a public company that can tap the equity markets, and that they will look for an acquisition so that they can have some operations.
The company's IR didn't return my phone call. I wanted to ask her what strategic directions are being considered.
The whole operations side of the co. is enough to make you feel sick, if it weren't for the cash.
I think I would be very happy if there is simply no news for another month. |
