Well, the company recently put out a press release, and (unfortunately) it looks like the company is going to focus on growing, not selling itself.
Even more unfortunately, the company is cutting their dividend and ceasing share buybacks.
But don’t take my word for it. Check out the release the company sent to all its shareholders below.
Now, I don’t think this press release makes much sense for a couple of reasons.
First, the company’s business continues to deteriorate. Here’s the most recent income statement.
Given the company’s business has been declining for years, I don’t see how installing a new CEO from outside the firm and giving him free reign to invest makes more sense than selling to a competitor who could realize synergies and would know what they’re doing.
Second, I don’t see how cutting the dividend and ceasing share buybacks make sense. Here’s their most recent balance sheet.
Now, the company owes their deceased ex-CEO’s family ~$1m, which isn’t on there. But even if you factor that in, the company has more than $1 per share in excess cash and, at today’s share price of ~$2.20, is trading for