Dewmar International BMC Inc (DEWM)

[NoMoDo]

Mergers typically take about 6 months to complete. I have owned a handful of private companies in my day and the ones I bought from another have always took much longer than I expected. One of them took 11 months because I suspected something wasn't right with the numbers. It hasn't been 6 months since the announcement. I am guessing that Moran was a bit optimistic in his hopes for a couple month turnaround.

A major hurdle is the audited financials. He will need audited financials for 2 years. He could have had '15 and '16 audited, but audited financials are hugely expensive. For a company this size, we are likely looking at $400k each. Who really cares about '15?

I am guessing that he scratched his head and said... Lets use '16 and '17 - because he needed '17 done anyway and the real shareholders will appreciate the $400k savings instead of being able to get a stamp of approval on '15 financials that no longer matter.

But if that is the case, the deal couldn't close in January because it typically takes about 2.5 to 3 months to get audited financials. So here we are...within a quiet period and the audited financials should be finished any day now.

I'd give things a week or two before I started worrying about whether things are moving forward on the merger front.