a) If a stock is undervalued, its price may rise before results. At that time, the PE was around 25. Particuarly in microcaps, it is a sad state of affairs that insiders almost always have more information about the actual value of the company.
Also, one of the long-term PE investors exited at this time and new investors took their place. The next quarter shareholding pattern will reveal more on this.
Correction was when the stock went into the ESM, similar to several other microcaps. Several microcaps have similarly recovered by now.
b) No idea. My guess is that older hardware was fully retired by this time.
c) Yes, this is a valid concern.
The corporate governance of the company does not seem to be the best. Earlier, they seem to have revealed to Valorem Advisors a lot of information that was not in the public domain. Hope they get their acts together soon.
Disclosure: Invested
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