NO,NO!!! This is GREAT, MAGNIFICENT!!!
Think about it. WHAT A BUYING OPPORTUNITY!!!
AND, THERE IS A WAY TO BUY IT AT A +30% DISCOUNT!!
Anybody that is familiar with AMID, knows what a strong company it is. It is selling off underperforming segments and using the money to acquire high performance assets, plus pay down debts.
Some writers have been saying that it needed to cut its dividend in order to better its cash flow. It is trying to acquire SXE, but hasn't been able to come up with the money. Now it will. AMID will probably also want to use the higher cash flow it is getting, now that it cut its dividend by 75%, to finish acquiring the other companies and assets that it was looking at, plus will also want to bring down its debt load.
After that, it can always raise its dividend, and a high dividend has always been one of its major goals.
Now for the Discount.
AMID is going to acquire SXE by paying .16 of the price of AMID at the time of the acquisition.
For instance, if it was acquiring SXE today at AMID's price of $6.755, it would pay $6.755 X .16 = $1.0808 for each share of SXE.
But SXE is at $0.8182 even though AMID would be paying $1.0808 for it. That means that you would have bought it for $0.2626 less that what AMID would be paying for it.
So you could get SXE @ a 32% discount.
Once, trading in AMID settles down, I will be buying SXE.
AMID's price has fallen, NOT BECAUSE THERE IS ANYTHING WRONG WITH THE COMPANY, JUST THE OPPOSITE, PEOPLE ARE SELLING IT BECAUSE IT IS A STRONGER COMPANY, or rather, BECAUSE THEY WERE IN IT ONLY FOR ITS DIVIDEND.
I'm in it because of its great potential. And it still has a dividend, plus it may raise that dividend some time in the future.
