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Re: big kahuna 01 post# 2027

Sunday, 10/25/2009 12:02:49 PM

Sunday, October 25, 2009 12:02:49 PM

Post# of 6653
I have owned stocks in the last 24 years that were bought out where the old shareholders got screwed, IMHO, with the takeover price, so I am very careful not to assume a take over will give the old stock holders a fair shake. Too many ways to skin the cat, and the big guys are pros at it. Last one was back in March when the Arabs saved a Canadian DOW Chemical like company just as the stock was starting to rebound from the grave on the latest quarterly, the Arabs bought it up before the stock could get back where it had been 6 months earlier. They bought it for 10% of what it had been worth based on stock price middle of last year, and about 20% of what it was worth now versus what it was selling for in march this year. It took a huge one time inventory hit on crude oil in storage in the 4th quarter last year, plus the temp drop in sales had investors running for the door, so the stock price dropped about 95%. Long story short, we could get screwed if the right guys move in on us at the right time, unless we support the stock price ourselves. Just one of the hazards of being a small time investor.
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