ABS has publicly responded to a tender offer by a small catitalized firm where they are offering to buy shares from stockholders for LESS than the current ABS stock price. And the response from ABS is...don't do it they can't be trusted.
I find this extremely ironic that ABS would have to come out and respond at all to a tender offer for stock that is LOWER than the current asking price. Think of it... you run a huge company, have 400,000,000 shares outstanding, 200,000 employees and you are concerned about telling shareholders how and when to buy your stock that you have destroyed over the last 5 - 10 years.
ABS should not be giving advice on how and when to buy and sell their stock... If so they should have told everyone to sell years ago instead of offering false hopes to investors and promises of profits unkept.
I personally I think it shows how bad management feels about their own company when they are worried about shareholders selling for less than the current asking price.
Hey ABS management team... ya, you Larry, Peter, Kevin, et al. Just make the company some money and you wouldn't have to worry about these things. Oh by the way, take a pay cut, becuase you should be getting less than you are making also.
I checked Google for TRC and found the conditions of their mini tender offer for another company:
TRC Capital has reserved the right to withdraw its offer at any time in its sole discretion, to delay payment for common shares tendered and to amend its offer in any respect. TRC Capital may also decline to purchase shares tendered if any one of numerous conditions is not satisfied including receipt by TRC Capital, on terms satisfactory to TRC Capital, of debt financing necessary to complete the offer.
I haven't seen the details of the tender offer, but if the offer is not binding on TRC, then they are basically asking for a free option to buy the shares if the market price remains higher, but would not have to buy the shares if the market price drops below what they are offering.
It is quite appropriate for the company to make this recommendation. This method of acquiring shares for a significant discount to the current market price takes advantage of the naive or elderly. Technically it isn't fraud, it just has the odor of it. This method is used regardless of the condition of the company whose shares are involved.
I am simply pointing out that if ABS were a well run company, the scum bag bottom feeders would not be around.
Management has destroyed this company for years. They continue to cut staff, give out paltry raises, all in the name of the company can't afford it, and then pocket large paychecks, month after month. They are sacrificing the little guy so they can say they are holding down costs yet they continue to make big bucks.
In my opinion, this is the worst form of scam, worst than any tender offer at 18 a share. TRC is asking people to sell at a dollar loss to the current market. Shareholders were asked to hold 5 years ago by management and are now still being asked to hold (or buy) when the stock price is 40 dollars lower!
Who are the real scam artists? Stock price dropped 40 bucks and they still are pocketing millions of shareholder dollars.
Sure the board is against it. They know if anyone with any sence gets in control then they are out of their positions. I would take anyone over these Bozo's. They have destroyed the company and I hope someone kicks their collective asses out.
Let see......Larry get approx. 5 times what the CEO of Walmart gets. Is he doing 5 times the job..............don't think so......!!!!
Well said! ABS longs (bagholders) have taken it in the shorts with ABS for years and per management and the rating agencies...sure looks like we miss out on this bull run in the market also. Will not be surprised to see ABS at $10-$12 over the coming six months dependent upon the rocks & shocks in ABS and the industry...it would be down there already if the markets were not so bullish. I admit that I bailed on ABS over $40 years ago when all the brokers were touting it, may buy in again when they are all screaming SELL!
Fortunately all of my current investments are up sharply this year. Glad I have stayed on the sidelines regarding ABS other than I wish I had shorted it like so many have. ABS is too big vs management talent to get this turned around and back on a profit growth path.