Flanders Corporation (PINK:FLDR) appears to have increased its popularity lately as the trading volume went more than 7 times above the 50-day average. The burst in the trading activity and the price rally are not based on any recent changes and will likely present only a short lived action.The company itself looks interesting, to say the least. Officially, their annual revenue for 2009 reached over $222 million, but due to low margins the bottom line held the profit to only $6.9 million. This was the first official profit over the last three years. Although the cash reserves are low, their asset/liability ratio doesn’t look bad.[BANNER]
The number of shares outstanding has barely changed over the three-year period. The large number of shares out, however, is the key factor influencing the price per share. The business is worth around $90 million in net tangible assets – thus the market cap could go higher than the current $75 million.
Problems also persist with the company’s reporting as they failed to provide official fillings for the 2 quarters of 2010. The company provided information only in the form of press releases, which makes the given results questionable to some extent. It looks weird, when a business generating millions in revenues cannot sustain regular auditing and reporting.
