Q: is their any future for this company. the stock price has gone nowhere, any chance of a take over?
5i Research Answer:
MGRO's small size and big loss this year (49%) will limit investor interest. It has about $3M in cash. To date, revenue has been minimal, but revenue is expected to rise nicely in the next two years. But, it is still losing money and cash flow is negative. More capital is going to be needed. Only one analyst follows the stock. We think it would make sense for a takeover, just to solve its ongoing capital requirements. Insiders own 12% and we doubt they would entertain a deal after a 67% one-year loss, unless they had to (which is entirely possible). We would not count on this, though, and would not be interested in owning this today.