Sorry, I still don't understand the problem with the balance...

Sorry, I still don't understand the problem with the balance sheet? Overall NWC increased which should alleviate your concerns on the changes in current assets and liabilities? If you really went through it they have actually absorbed the current liabilities of Watmar (e.g the $0.7M of contract liabilities) and still increased their NWC by circa $1.6M ($14.2 - $12.6M).

In regard to cash, the reason you are not seeing the +CFO of $2.1M translate to actual CASH is because the $1.1m Investment cashflow (predominately WATMAR purchase), and $0.9M as part of financing cash flow. But this money is not lost right, both of which are actually now under the non-current Assets? Hence the overall increase in total equity.

A quick scan of those companies you mentioned MCAP.
SRG: $400M
DUR: $320M
SXE: $240M
CVL: $460M

WSI: $12M

If you're talking explicitly about options, I don't know them well enough to agree they are "better", but I would agree they are different based on size alone.

But again, I agree, WSI is risky, unattractive, not on trend, boring, terrible at communicating, and without some sort of left field news most likely will not show much capital appreciation in the short term. But do I personally think there is value based on all current information available right now, yes.