Shareholders don't lose. They'll probably get the .50 cent per share old price or $100 per share new price which is much higher than the average of the last few years.
Going private makes sense. Why bother with costly compliance issues when it's not necessary or useful. The only reason to be public is to raise funds for the firm and to provide liquidity for shareholders. Neither is true in this case since as qtip puts it, "No one sells TEVE shares" and Lenfest clearl doesn't need money to keep the company going.
Losing $2.5 million per year, year after year, will not attract the average investor or analyst no matter now good a company's product might be.
What's a company worth? Use 20 times earnings or three times sales but let's be generous and say four times sales.. Can't use earnings here since there in none. Sales are or will be say $5 million a year, giving TEVE a value of #20 million. With 700,000 shares out that's $30 per share per new consolidate share or 15 cents per old share. That's about the average share price over the last few years.
Now unless there is a short squeeze with the supposed short position of millions of naked short shares out there claimed by joe, there won't even be a spike above about $50. If there realy were a large short position, the shorts would have scrambled to cover once the consolidation was announced. I didn't see any such rush. So I don't believe the short theory is correct.
But we shall soon see.
