I’ve heard from several people that they think there could possibly be a merger between $WRES & $ESCR in the work. I’ve been following these two companies for a while so I thought I would take a closer look at it and IMO, I think they could be right.
Here is a timeline of events which will be followed by my opinion on what could possibly be happening:
9/1/2015 “Companies extend deadline for purchase and sale agreement to 9/17/2015” http://biz.yahoo.com/e/150901/wres8-k.html The companies announced they are still in talks and need an extension to finalize the deal.
9/17/2015 Nothing is announced on whether the agreement went through or not by either company
This would imply a ~$2.10/share Book Value for the company and a ~$.2564/share Cash Value.
Yes I believe these numbers have gone down some as the companies revenues suck. However their asset/debt ratio is very nice and intriguing and with the position they are at now, trading under $.05/share, this is a big time target to be acquired by a larger more successful company (perhaps WRES or someone else).
$WRES is clearly doing much better than $ESCR and $ESCR does have assets that could possibly interest $WRES who could possibly operate them more effectively then the current $ESCR staff.
In my opinion, $ESCR chose to delist from the NSDQ because there is an acquisition play involved, whether it’s with $WRES or not. With the timeline of events above, it is in my opinion that it has a high chance of being with $WRES but this is just an assumption based on the events.
Trade at your own risk and do not use this as investment advice. All of these opinions and assumptions are my own and my own only.
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