Insighter,
Your concerns are duly noted. However, allow me to speculate on why this deal may be positive for WSGI, and I stress MAYBE. The following is all in my own humble opinion, of course. Let's say that DAC goes public, and it seems likely from all of the opinions thrown around the board that it will, and their share price is pegged at a dollar. The sale of the LTAS asset to DAC would then be valued at $10,335,000 - $10 mil at a dollar a share plus the cash up front. It would take approximately 33 milspec BIBs to bring in that kind of gross receipts. Now, if you subtract the cost of those 33 BIBs - let's pick a reasonable number because I really don't know WSGI's actual cost - say $150K each - one would have to sell closer to 60 or so BIBs to realize $10 mil in actual cash left over at the end of the day. My question to you and others is this - how long do you think it would take for WSGI to sell that many BIBs? And really, if the investors have a target product in mind, albeit Argus or GTC or both, for whatever reason, and they're willing to invest millions to see it happen, then this deal isn't elegant. It's friggin' brilliant.
There are many things we don't know, obviously, and many other scenarios that may be closer to the truth than the one I presented. I'm all ears . . . And just remember, you can't staple jello to a tree. But, that's only if we assume the jello is the same kind our moms made.
Best,
bank
