Global Diamond Exchange, Inc. (GBDX)

[Tacoz]

Question- People are saying figures they think the buyout could be for that are 20 times or more than the half penny the stock is at. What possible reason would the buyout company be willing to do it so high and not negotiate something very close or slightly above the current stock price. Also, do people just make this up or is there some kind of precedent in general or specific basis in this case to guess a 10x or 20x or even higher buyout. For that matter, what reason is there to know it will even sell for a LOSS? The company shut down once, and I think their website mentioned the difficulties of running a public traded company. So yea they publicized 2 diamond sales to show they can trade in russia - but can it be profitable and is it for real? All those questions make me wonder if it will even sell for less than the stock price. Sure its a great fantasy, but do we have a real basis to believe it.


I am new to stocks but when companies do buyouts the few times I saw it it was only about 50% higher than the asking price on the stock; besides what would be the point to buy out so much higher when the buyout company could just outright purchase the stock until they own the majority of it and save themself all that money.

In trying to answer my own question, does it have to do with the real value of the company (its potential to make way way way more money than it is selling at, like if its estimated earnings are 100000x the current price? and if a competitior is buying it then it is a potential menace to them).

This post is a serious question- I am new to this. It is not meant to "bash" the stock I just bought some of it.