Replies to post #5370 on Vertical Branding Inc.(fka VBDG)

[Rawnoc]

I don't consider a 100% premium on a stock that barely trades with a $3 million market cap to be "extraordinarily generous" lol

Hell, I've seen buyouts recently for 300-400% premiums on more liquid stocks. The trading (or lack of) probably doesn't play much of a role in a buyout these days if any role at all whatsoever.

Hell, the acquisition VBDG themselves made -- Adsouth -- they paid more for than the current market cap of VBDG. With VBDG sales at around $40 million a year plus 7+ new products lined up and plenty of fat to trim if they were bought out and ceased becoming a public company, a .50+ buyout would be only $15 million and probably still only 1/3rd of sales.

And that's doesn't include the off-balance sheet value VBDG has in a buyout -- not just the retail relationships, but the fact that they are "Cateogory Captain" for a number of retail chains. Any buyer would then obtain control and the ability to put their own products into the "Cateogory Captain" area.

[nsomniyak]

It seems pretty strange to me that the very first whiff of "maybe there could be a buyout" came yesterday when VBDG was getting killed.

If that were a real possibility we would have heard about it sooner,

Who knows. You can make a case that VBDG could be a buyout target, but I for one am not going to get excited about that possibility being floated for the first time on a day like yesterday for VBDG.