CCME - Tender offer.
It would be nice if CCME is so pissed off that they will go for a nuclear option against the shorts. I may make small changes if they do - via some loss at the current prices on my holdings. But it is unrealistic and unhelpful to expect a good management team goes nuclear each time there is a crisis. After all, if normal company could have many crisis during its existence, most directly impact the operations.
Back to the tender offer, I am absolutely opposed to any "tender" offers at the price of $10 or $12. That offer sends a wrong signal to the market about the company's worth. I have paid more than that for my current holdings.
It is wise, however, for company to announce a standing buy back program that will catch any share when and if the price drops to a certain level, such as $10. The purpose of the buy back is to stabilize the market, not to reduce the floats. With $100m, the company can essentially lock up its entire float at a worst case, but not likely scenario. This will set up a floor and prevent panic selling.
The rest will have to sort out through the market. While the current market is unfriendly to Chinese stocks. Things can change as long as the people realizes that CCME is indeed a very profitable company.
AI
