Lignol is starting to look a bit desperate. They need cash for their operations, so are looking to sell ARW shares, even though ARW are no cash-positive and profitable- bad timing for Lignol, and they may not get much if they sold en-block. They represent a share overhang for AWR.
What would make sense is for ARW to take over Lignol for scrip. ARW has few shares (100:1 consolidation will do that), and it would be a de facto share buyback to buy the company that owns shares in ARW.
ARW has said they will be profitable for each month of the rest of the year. Since that ANN, it has lost share price value. Hard to know why, but it will have a positive PE/r if it keeps this up. With a $20m market cap and supportive shareholders, this one is not expensive.
TEK Price at posting:
46.5¢ Sentiment: None Disclosure: Not Held
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