Why Is Fortunet Finally Being Valued Properly?

FortuNet (FNET) has been a stock on my radar for quite sometime; which shouldn't be a surprise, since I am a well known sucker for companies that can be bought for less than their cash minus all liabilities. In March, this was the certainly the case, but since there were other companies that I was more impressed with, I never bought into the company.

After FNET paid out a massive dividend, the share price fell to just over a dollar and hasn't really moved since. I personally never understood the valuation, as their ability to seemingly print money held up quite well during the recession, coupled with their board feeling confident enough in the business to distribute $2.50 a share in cash.

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As of Tuesday, it seems as though FNET can effectively be taken off of my radar, as it is at a valuation that makes some level of sense... and on no news, at that! It isn't that stuff of this nature never occurs with nano-caps, but, this is certainly weird. The entire float of the company changed hands almost 3 times, and that was before the end of the trading day. I look forward to hearing why this happened; regardless of whether it some sort of manipulation or takeover attempt.

Disclosure: This is not investment advice. Unfortunately, I never owned shares of FNET (which shows what I know!) :(