INFT released earnings last night. Noting to write home about at all. Sales up 4% YOY, operating “income” swung to a loss of $224,000. It looks like they are doing SOMETHING, although exactly what is the question. They wrote-off some old, bad investment and the related tax effects which caused an overall loss of $4.6 million in the quarter ($.40 per share). Also made the CFO the new President and CEO, although they don’t seem to say what is happening with the current CEO. So either they are preparing for a sale of the company (cleaning up the balance sheet and putting the finance guy in charge) or this is just a new way to get the current management higher pay and some cheap stock options. Valuation has dropped again. Now $6.13. Now a HOLD. Only good news is that they have $2.64 a share in cash–70% of the current market value. Still expect this to be sold, but $5.50 is looking more like $5 to me.
How do you calculate $2.64/cash; I calculate $2.58. $30.2M in cash divided by 11.72M shares (after 170,000 share cancellation in 1Q 2007 per conference call). >>I follow this one closely, too, and have been accumulating since the fall. I blog about this one, too. I also see a going private transaction – somewhere in the $5.50-$7.50 range. Reference to growing costs of Sarbox compliance during conference call is a hint as is closing out Provantis deal, which should help with cash utilization and keep more on hand to build the balance sheet.>>I’d be a very happy camper, even at $5, with this one.>>Time will tell.
I used $30.17 million for cash, and 11.42 million for shares. I typically use the fully diluted shares O/S for the current quarter.>>I agree that this is an ideal GP deal too. Hopefully thats what they are preparing for. >>This one is like watching moss grow. Hopefully MGMT. will not give this away in exchange for some lucrative compensation package and we will see $6+.
csi>>inforte stock has had nothing but accumulation in past 3-4 months as stock has plummetted to multi year lows while sec filings show more accumulation by 5% shareholders,>very bizzare stock movement