Nyer Medical NYER is planning to liquidate after they sell their pharmacies for around $19 million. NYER was a chronic net-net for a long time I looked at a couple years ago. They've only got $5 million in cash on their last balance sheet. Let's say they get the full $19 million that's about $24 mil in cash less a whopping $10 million in total debt. This is assuming nothing changed from the filing date.
The $7.5 mil market cap doesn't seem like much of a spread. They do have $6 mil in receivables. I think a conservative crunch would put liquidation value around $10-12 million but this is just a really quick back of envelope. I don't think the stock even traded that high. It only got to 2.45 or about $9 mil. I don't think I'll be playing this right now but some of you all might want to do some more research and number crunching. It seems like there could be a 15% or so spread there.
The price action is sort of weird for a liquidation news. It opened up the day trading over $2 a share and hit a high of $2.40's per share then steadily sold off all day and closed at 1.86. I imagine the selling pressure was from bitter bag-holders who bought in over the past few years and were happy to dump their shares with the stock up over 100% on the day. That is just market forces based on past price action aka technical analysis.
full disclosure:no position
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