Q: Hi-it's been more than 6 months since anybody has asked a question about this loser. What would be your opinion now?
Regards, Dave
Regards, Dave
5i Research Answer:
The pain continues here, with the stock down 28% YTD. This of course makes it even smaller and harder to attract investors. It has $51M cash now, and EPS (12 months to March 31) was 2c a share positive. Cash flow remains low, and it remains quite expensive on an earnings basis (less so on sales). Operating margin, our main concern, hasn't improved. Insiders own 30%, and with some other big holders a privatization is always possible. But we do not like holding just on this possibility. We would be fine letting this one go now.