Replies to post #4297 on Cavico Corp (fka CAVO)

[john302]

I agree they would want to do it as cheaply as possible, but like I said the terms would decide whether current shareholders would profit or suffer further.
Usually, on the big boards, private equity means that KKR or Cerebus or somebody would take a company private, at a premium to market. In those cases, shareholders benefit.
But on the OTCBB, "private equity" means dilution via convertable notes and warrants at a discount, not a premium, to the market price, which damages us "little guys" while the equity firms rake in the dough.
I don't know how high up or close to actual operations your source is, he might just erronously think "us investing in company = increased PPS" because that is the way it works on the big boards when PE takes a company private.
Do you know the name of the PE firm, or if it is a PE firm that mostly does larger cap stocks?

[ezs123]

There has been tons of hype about this company, big backlogs, high rise office building, vietnam going to be a big growing country and cvic at the center, etc.. But now that it is at it's low why would you want to sell it, now is the time to buy it. So if you sell it you are admitting that is was just hype. funny how the market works on mentalities.