The only reason I am expecting this before the news (although it does go a bit against what the company has stated) is that stocks in general run much harder coming in to expected news vs the actual news itself (the whole buy on rumor sell on news thing).
Side Note: The company stated on Tuesday the 24th that they were going to follow up with the buyer and I get an email on the 25th from Xtremepicks saying new pick in a few days.
It is my understanding that everything is done and everything is approved, they are simply waiting on some signatures. Seems to me Buyer could have said on the 24th "All looks great! Why don't you swing on by on Wednesday the 2nd and we'll get these docs signed"...Company calls IR and says we need to start promo this Friday (or whenever)...END Side Note...
Not always the case, and this could certainly be the exception, but they sort of need to sell into a frenzy as they are going to need to sell a fair amount to raise the money they need to get this going. Not to mention, they need to do it by Nov. 14th unless another Export-Import Bank extension is issued. A well versed IR/promoter could have advised them of how to best do this and laid out a game plan for them.
I also believe the company has begun to set the stage for this promo even as far back as the shareholders meeting. If I remember correctly they touted a $3 share price (I wasn't in on the call, but read that here) and I believe we will see that number restated in a future promo newsletter.
Don't get me wrong the company could one day achieve that number, but I don't think anytime soon...not if 1 deal takes this long to close (future deals may come quicker though). So that got me thinking that they were setting the stage more than giving a realistic short term number (short meaning a year or less).
In addition, the way they handle this will be very important to the future value of the stock as a poor promotion and dumping a boatload of shares for .01-.02 means crazy dilution. I know the company does not want this as they appear to genuinely care about shareholders, but ultimately the deal has to get done or there is no company.
On the other hand, run the stock up to a dollar (don't know that it will go quite that high...wishful thinking though) and they only need to sell a "handful" meaning the $3 target is not so far fetched with a few more deals.
Whether I'm right or wrong about when or who promotes this I still think this stock will run hard as legitimate .01 companies, with good share structures and with huge present and future potential are hard to come by!
Especially ones about to ink $300,000,000 deals...It's pretty ridiculous when you think about how undervalued this stock currently is. I'm sure the company is prepared and I'm guessing this will be a real fun ride, so buckle your seat belts!!!
By the way, this is all in my opinion...I'm bored, yet hopeful, and I'm sure over analyzing...:)
Good trading...
TraderGreen
AI
