I tend to disagree MM, looking the message was of no surprise. They recognise the mistakes of the past management and have rectified the situation.
They have also not been sensationalist in giving unrealistic profit forecasts unlike the previous CEO. However they have indicated 2008 will either be breakeven or profitable.
Given this new information I am expecting a EBITDA of between $0 -> $300k for the current quarter, given that there maybe a restructuring cost over run from the first quarter.
I also expect an increase in operating cashflow to over $3.5Mill due to reduced costs.
I still believe this company is undervalued at its current price at $21mill and would expect it to move to around 6c over the next month or two (not with standing more world financial problems in July).
Regards.
HYO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
