...with respect to capturing value, contrary to perception on this board. The preferred gets no dividend. They extract the same value in a liquidation as if they converted to common. Preferred holder also happens to be the second-largest common holder.

Fully diluted, this company is currently worth $5.11 per share giving no value to anything but cash and taking out all liablities. It is rare to be able to pick up dollars for 50 cents, but this small, little-followed company is offering exactly that (actually for 45 cents given today's market price).

The company never had more than a $10 million cash drain in any year. In fact, the maximum was $5 million before this year. If they drain $10 million per year for the next three years, your investment will be worth the net cash on its books at the end of three years. If it takes that long to liquidate, you don't gain anything, but you won't lose either. It is a race against time, but a very winnable one when the largest owner controls 40% of the company. I don't think they'll put up with much more cash drain, do you?

Worst-case scenario is an ill-advised, over-priced acquisition with our cash, but given the recent sale of the defense business, I don't think that is the direction in which they are being pushed.