News Focus
News Focus
icon url

SEF

05/18/10 10:59 AM

#5574 RE: U2StpM #5570

A point I don't believe anyone has brought up recently is that this company has very few CS compared to other companies. Most "normal" companies use their CS to help pay off debt or raise money for operations, the banks showed that ability recently paying off the government. There is a relation between company value and cs values because it gives them access to $. I find it interesting that Goldman which is known for making money at all cost is willing to pay $27 for an IPO stock in a company which the BOD is trying to argue has little or no value. Furthermore because VSTNQ has a low CS amount it could easily raise money with a new issue of stock once it has recovered from BK. They are willing/able to sell options at $27 to Goldman is it so unbelievable that they could issue more CS at $15-20 if they keep the current CS?
icon url

Gileon7

05/18/10 1:51 PM

#5580 RE: U2StpM #5570

It does matter how investors value the company.

If you have something and people are willing to pay $10 for it, it is worth $10. No matter how much someone else says it is worth $5.
By the same token it is worth $10 no matter how much someone else says it is worth $20. It is worth what people are willing to pay for it.

It all matters to a point. Everything regarding dollars and cents matters when you are valuing something. That's where we are right now, what is the value of Visteon? Is it 2 billion, 4, 6, 8..... Judge Sontchi believes he is the best person to decide. I think he is wrong. I believe the best person (company) to decide would be an independent third party who has proven expert knowledge of valuing companies, especially automotive companies.