Microcap Activist
Special situations, activist investor, nano-cap, long/short equity

Spinning Off And Returning The Cash To eOn Communications' Shareholders

(Editors' Note: This article discusses a micro-cap stock. Please be aware of the risks associated with these stocks.)

eOn Communications (EONC) is a telecommunications company based in Corinth, MS. Eon has catered to the US Coast Guard, the FAA, and tens or possibly hundreds of different government and private agencies and institutions.

eOn is trading at around a 50% discount to tangible book value. Here are the following facts for the basis my case for EONC.

  • Market capitalization of $2.7M
  • $1.65M in cash
  • Combined $1.7M cash available under various unused Line of Credit agreements backed by high inventory and receivables
  • Management owns 28% of stock
  • 82 employees
  • No preferred stock
  • Share price under a dollar

As you can see, the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details