InvestorsHub Logo
icon url

Vercingetorix

01/12/10 9:37 PM

#205783 RE: nicehit #205779

As I understand it, Neustar tries to maintain a neutral position..
icon url

Polaris1

01/12/10 9:41 PM

#205784 RE: nicehit #205779

I agree that the company is not sold. However, from a practical standpoint, I believe that YA Global is primarily interested in the time-value of money. In other words, I would rather have $100 now than the possibility of $120 in one year's time. Why take a chance on future profits when I can take the guaranteed thing NOW and move on to the next struggling company?

In some ways I view this like a bank foreclosing on the home of a mortgagor. The bank will sell the home at auction to the first bidder who offers enough to cover the mortgagor's outstanding debt. If someone bids substantially more, great! If they bid the bare minimum, fine! Either way the bank is only concerned with its own investment. Here, YA global will shop NEOM to try to make a profit. However, YA global will not hesitate to sell if the only offers on the table are low-ball because they are concerned only with themselves.