It means that in the event of sale, if the company's shareholders or the buyers file a lawsuit against the executives or directors then the company will pay for their defense. Directors are usually nervous about getting sued only if they make a material decision.
There is no deal yet so they have to run the business as usual. What's more interesting is the indemnification agreement. They usually get updated when the deal is in the works.
Bloomberg still says a deal is in the works according to their last article. If there really is a deal in place, I cant blame Bloomberg for SYNA's terrible earnings. It actually makes a lot of sense for the Chinese to wait until the stock settled to whereever it was going to settle to after earnings. If I were SYNA and the Chinese offered me 95-100 a share, I would take it in a heartbeat now.
If the original offer for SYNA was true, then the management created a loss by not accepting the $110 offer in the first place. The stockholders got taken.
If it was all a rumor in the first place, then Bloomberg should have investigated the rumor before publishing any article regarding the rumor, especially the second time around. It seems to me that Bloomberg has lost some creditability for the future. I would have to doubt any article they publish in the future, unless it was confirmed by at least two other sources.
If the rumor came from SYNA itself, the SEC should investigate.
It's time for the management at SYNA to start paying a dividend. They are profitable enough to share the profit with the stockholders.
Looks like they are doing what I predicted. Market getting destroyed, SYNA trading sideways. If the Chinese really want the company, the company isn't going to let the sp crash since doing so would yield them less money in a buyout.
Company will recruit funds to prop up the stock price if there is a deal taking place. They won't let the stock tank. We have seen it before with this management. Don't blame the Chinese for low balling. Thinking if deal happens it will be somewhere in the 90s.
yeah thats Bloomberg crowd buying. Probably they'll get their minion to publish something over the weekend to pop up the prices but I doubt Chinese are going to buy this one without a huge discount.
Seems huge Call buying seen in June strike. Likely betting on the chinese bid. If your right and this does decline an additional 15% then its curtains for the stock.
"Smartphone shipments in China plunged in the first quarter, falling more than the global market, a new report shows, a stat that could worry the world's biggest phone makers including Apple and Huawei.
Vendors shipped 104.9 million units to China in the first quarter of 2016, a five percent year-over-year decline from the 109.8 million recorded in the same period last year, according to research firm Strategy Analytics. The fall outstrips the global smartphone market which fell 3 percent.
China still remains the world's largest smartphone market and many manufacturers still see the world's second-largest economy as a big growth driver for their business. However, with the market now maturing, conditions are likely to be tougher.
"China smartphone growth is slowing due to market saturation, inventory build and economic headwinds," Linda Sui, director at Strategy Analytics, said in a press release."
Well stated. Bloomberg's statements and the lack of commentary on them by SYNA management are akin to a pump and dump scheme. No wonder Main Street resents Wall Street.