– Mohnish Pabrai continues his accumulation of Delta Financial while the price of the company’s stock continues to linger under $10 a share
–Itex announced their second quarter results last night. Revenues for the quarter were down 9%, which the company attributed to the consolidation of barter offices in their system and the decreasing amount of membership accounts that overlapped once Itex merger with BXI in July 2005. I was puzzled by the fact that the company spent $400k in share repurchases in the second quarter, yet there are actually more diluted shares outstanding than the company had at the end of the 1st quarter. Itex’s Board of Directors were granted 40k shares each in compensation in January 2007, but that does not account for the other 280k shares that should now be retired. On a plus side, operational cash flow levels continue to be strong due to a large drop in SG&A costs.
– Nutrition Management Services’ Board of Directors rejected the bids they received for the Collegeville Inn auction. Management claims they had a recent appraisal on the property that resulted in a valuation of $17 million dollars, while the highest totals bids at the auction for the properties totalled only $3.9 million dollars. Nutrition Management’s CEO claims that several groups have expressed an interest in the properties since the auction was concluded. If the difference between the purchase and appraised price could be narrowed even slightly, the resulting benefit to Nutrition Management Services could be substantial.
Link to article on rejection of bids
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