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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (52810)	11/15/2013 6:36:54 PM
From: E_K_S	Read Replies (1) \| Respond to of 78717

I agree w/ you. They brought in this very expensive management talent to package the company up for sale, then a large private equity investor steps in (w/ experience operating/owning a recycle company), time passes (90 days) and then this announcement. Either the private equity guy (along w/ their experienced management team) did not like what they saw and/or they could not buy the company at a fire sale price. Maybe our old geezer still has some wits to him as he now is shareholder friendly and thinks there is a better deal down the road. I suspect the private equity group was trying to steal the company away on the cheap and would have if those options were granted. I first read this news as negative but the more I thought about it I see it as a long run positive. TBV is north of $4.00/share and when the metal/recycle market cycle was "hot", the company was actually making pretty good money. At one time I thought $6.00/share was a "value" buy. I had just noticed a whole lot of volume the last 10 days and it looks like somebody is/was accumulating shares and/or it is the 125K shares being passed thru in the market maker system. I would think that this buy back would have been a private party buy/sell transaction and not reflected in the daily vol share count. I am a holder too and was going to load up on my position if I could buy below $2.00/share. I see the risk/reward quite good w/ limited downside. As the rest of the market hits all time highs, this one could be a safe place to hide if/when you can buy at the right price. EKS