Thursday, 6 November 2008

Brainhunter Management Sends A Message

Brainhunter (TSX: BH)
Basic Shares Issued: 43.958 million

Following the close of the market on November 5th the company issued a news release that in short states the insiders are ready to start buying the stock.

The Board of Directors authorized a change to the blackout period that insiders can now buy not sell stock during these periods. Blackouts have stipulated periods generally around the release of quarterly or year end financial statements.

The purchase of shares is still subject to normal insider rules as governed by regulatory authorities.

The statements in the release were to the point as Chairman and CEO John McKimm flatly stated, “it is my personal intent to start buying shares immediately”.

Further stated was, “at a market capitalization of less than $10.0 million, Brainhunter is truly an undervalued company. As one of the largest professional staffing companies in Canada with sales approaching $240.0 million, a blue chip client base, consistently positive cash flow, an annuity base of business and one of the leading most comprehensive Human Capital Management Technology Platforms in the industry, the current market capitalization makes no sense. Given the current market environment, management and insiders believe it is a tremendous opportunity to acquire Brainhunter common shares at what we believe is a huge discount to the true value of the Company.”

Almost 220 thousand shares traded at $0.13/share on November 5th, which is a large trading day for BH these days. Is there more to come?