Q: Is there a solid business here- do you think an investor buying at these low prices will be rewarded? If Plantro gives up an sells its shares I am thinking if they can find a single strategic purchaser it might be a catalyst.
5i Research Answer:
Plantro has pulled its bid, so it certainly might become a seller. Frankly, the stock has become a bit of a basket case. It has been up for sale. Management has revolved. It buys back stock and then issues stock. But the main issue is debt. 12-month cash flow was $81M. Obligations net of cash are $1.4 billion. We would consider it low quality and too risky. Yes, it could be sold. But we would have said that a long time ago as well.