Certain board members of MKTG Services Inc., including its chairman, have begun purchasing the company’s stock on the open market. The purchases are expected to total a minimum of 5% of the total outstanding shares, with a maximum of 10% depending on market conditions.
“The recent decrease in our stock price, we believe, does not accurately represent the current condition of our company,” said Jeremy Barbera, chairman and CEO, in a statement. “Today’s action by such persons represents a validation of the company’s business model and a belief that the shares remain significantly undervalued.”
The firm’s stock was listed at 46 cents yesterday. The company has about 6.65 million outstanding shares.
Barbera added that there have been no adverse events affecting the company since its most recent earnings release and conference call last month.
For the third quarter ended March 31, MKTG Services reported revenue of $8.7 million compared to actual revenues of $31.1 million a year earlier. The firm’s third-quarter net loss grew to $39.4 million from $12.9 million one year ago. The loss included a one-time non-cash Goodwill charge of $35.9 million taken on acquisitions over the last seven years.
