Thursday, March 26, 2009

Dataram Still (Not) Delivering (To Shareholders)

In Dataram's most recent press release, the company more or less proclaims "HEY EVERYBODY!!! WE ARE STILL IN BUSINESS!" The release, ironically titled 'Dataram Still Delivering, Still Committed to Our Customers' outlines the great products that they make, but makes no mention of delivering value to shareholders. No surprise here, but I don't give a damn about the making the best products... I just want for the company to get an excellent return on my invested capital (which I don't feel the industry can do at present), give me my portion of the cash that my stock represents, or do a nice sized share repurchase to retire shares that represent more cash than they trade at.

It's too bad that the company is supplying a great product to a market that is already flooded with memory-crippling their profitability and edging cash flow in the red. It seems that the leadership of the company, being as option happy as they are, would support a modest share repurchase. Much to the chagrin of the owners of the company (people like me), our elected representatives don't seem to understand buying a dollar of cash by purchasing 70 cents (or so) in stock.

Meanwhile, I have still not heard back from the board of directors in regard to my last letter- No surprise there... Who would have thought that cigar butt stocks could be so odd? I guess that this is all OK since my original thesis was that that the stock is more or less a call option on the company's cash.

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