NEW YORK, July 28, 2011 (GLOBE NEWSWIRE) -- Arcadia Capital Advisors, LLC ("Arcadia"), through its Managing Director, Richard S. Rofé ("Rofé"), has sent an open letter to the shareholders of Ballantyne Strong, Inc. ("Ballantyne," "BTN," or the "Company") (AMEX:BTN), urging the Board of Directors (the "Board") to actively buy back shares under the current $1.0 million share repurchase program. The letter also requested that the management team of Ballantyne ("Management") and Board expand the program by an additional $3.0 million, allocating a total of $4.0 million for the share buyback program.
"Arcadia's recommendations here are in no way a departure from a course charted, but not yet traveled, by the Company," stated Rofé. "The Company's stock is down since the end of the first quarter despite the positive efforts and results posted by Management. A buyback would provide some price support for a stock that has seen continuous selling."
"It is Arcadia's position that the Company is significantly undervalued and that a share buyback would improve investors' overall perception of BTN's equity value," Rofé explained. "The shares are trading close to 1x tangible book value, despite their new product offerings and the tremendous growth opportunity in China. In our opinion, the renewed commitment to the repurchase program would help reduce the discount currently applied to the relative value of BTN's stock by the market, and demonstrate the Board's confidence in the Company's ability to execute its business plan."
"We believe this measure would also build a positive relationship with a patient but suffering shareholder base that has seen its investment fall drastically since a new CEO was introduced in November 2010," Rofé continued. "The buyback program could allow the Company to materially reduce its number of outstanding shares, thereby generating long term shareholder value in a tax efficient manner."
"Management and Board must be guided by responsibility to the Company's shareholders," concluded Rofé. "We do not see a better time to expand and execute the share buyback than now, when the stock is trading at a discount to peers and close to book value."
Click the attached link for the letter:
https://irm.ipreo.com/OpenFileLink.aspx?ID1=8dd11417e1c44cb7ba88b3295aeb22a2&ID2=81060382
About Arcadia Capital Advisors, LLC
Arcadia Capital Advisors, LLC is a private investment firm based in New York that employs a value-oriented investment philosophy in the management of long/short hedge funds focused on small and micro-cap companies. The firm is led by Richard Rofé and is sponsored by M.D. Sass-Macquarie Financial Strategies.