I have a different view of what today's NR may mean to us short term (With Matin I've learn to look for the negative interpretation of his apparently positive NR).
1- I often mentionned that, not being able to audit and report his financials for reasons of his, Matin could walk away from his mess and start fresh by selling the company. The last post of mine hinting that was:
Posted by: pual
In reply to: WeightlossProgramcom who wrote msg# 12115 Date:9/19/2006 11:38:49 AM
Post #of 12189
Assuming that there is a good business behind this stock (a business? probably ... A good one? doubt it) and that Matin got fedup to be continuously insulted by shareholders expecting him to do things he cannot afford to do, what could Matin (and close friends) do?
Sink the stock as low as he can, buy it back from discourage shareholders then privatize the company by buying back the remaining ones at a price acceptable by the majority of shareholders represented at the board (i.e. himself).
Reading today's NR, I was reminded of what recently happen to another stock of mine (In this case, it was great news for me):
Step 1: JUNE 29th (PPS was $3.06)
Yak Communications Inc. Engages Investment Banking Firm
MIAMI, FLORIDA AND TORONTO, ONTARIO, Jun 29, 2006 (MARKET WIRE via COMTEX) -- Yak Communications Inc. (NASDAQ: YAKC), a provider of legacy, dial around, and VoIP telephony services to residential and business customers, announced today that the Independent Committee of its Board of Directors has engaged the investment banking firm of Orion Securities Inc. to advise the Company with regard to its various strategic alternatives, including the potential sale of the Company to maximize shareholder value.
Step 2:SEPTEMBER 21st (PPS was $3.90)
TORONTO, ONTARIO and MIAMI, FLORIDA, Sep 21, 2006 (CCNMatthews via COMTEX) -- Yak Communications Inc. (NASDAQ: YAKC) announced today that its Board of Directors has approved a cash offer to acquire all of the outstanding shares of Yak's common stock pursuant to a definitive agreement with Globalive Communications Corp.
The $5.25 per share offer by Globalive represents a premium of approximately 39% to the $3.79 closing price of Yak's common stock on the NASDAQ Global Market on September 19, 2006.
I can imagine Veltex now coming back in 2 months or so with a PR reading:
"Veltex announced today that its Board of Directors has approved a cash offer to acquire all of the outstanding shares of Veltex's common stock.
The $0.525 per share offer represents a premium of approximately 40% to the $0.375 closing price of Veltex's common stock on December 19, 2006."
Hope I am wrong, my cost be just under $1.00. However, may this would be the least of 2 evils ???
