Lemelson reports 10% stake in Geospace, urges share repurchases
Lemelson Capital Management, announced it has acquired, for its flagship Amvona Fund, LP, a stake of approximately 10% in shares of Geospace Technologies. In addition, it is urging the company to initiate an immediate share repurchase plan. Lemelson Capital believes the near-term intrinsic value of Geospace Technologies common stock to be at least $38 per share, with Chief Investment Officer Emmanuel Lemelson stating, "Geospace Technologies continues to experience significant increases in revenues and liquidity as evidenced by the more than $10 million in cash provided by operating activities in fiscal year 2017. We believe the company's non-cash charges, including aggressive inventory write-downs and subsequent sales of these same depreciated inventories at significant profits represent a tremendous store of shareholder value which is not reflected on the company's balance sheet and points to the need for an immediate and aggressive share buyback program."