Would appreciate you thoughts on DND's current prospects.
Given all the negative news surrounding the company, does it make sense to continue to hold on to the potential chance that the company will be bought out and taken private?
Otherwise will most likely sell before year end to take advantage of the tax loss.
Appreciate the service as always.
Thanks,
Greg C.
One of the issues with DND is that it is a 'high maintenance' stock. There is always something going on and it takes up time to consider whether it is for sale or not, whether debt is an issue and other factors such as lawsuits by customers. With its horrible long term performance this time can be better utilized on companies with greater potential. There is always something going on with these guys! Currently, the company has refiled some financials (just a typo error), has seen its credit conditions waived, and is seeing the OSC question some of its accounting. And that's just this week! Its small size and giant debt load add significant risks. Cash flow is positive but it is still losing money. It's got a new CEO (as of July). The ONLY interest we would have here is for a takeout. Plantro is making waves and owns 11%. Plantro was founded by the former CEO of DND, which makes this fight a bit more interesting than most. Insiders own 9%. We never like holding a stock 'just' for an M&A opportunity. But in this case, we think giving it two more months is likely the best move, and selling into year end if nothing happens here.