Zsolt, board members and shareholders loyal to Zsolt most likely own enough shares to prevent the type of action this group is trying to bring in the removal of the current board. That being the case, I see their only option as a hostile takeover, buying out the company. Which then begs the question, "Would you sell your shares and if so at what price?" It sounds like a takeover offer would be somewhere in the teens ($14-$18). I can see where long time owners of the stock who have seen $45+ would not be interested in selling out at anywhere near that price. More recent owners who may be in between $6-$10 might be interested. So for those of you out there who own the stock, are you willing to sell out? And if so, at what price? Personally, I really have no interest in selling right now, but if somebody offered me $100, I'd have t think about it.
I'm not interested in a quick buck, and a buyout would likely leave me with only a little more than my entry price of $13. I got into this stock hoping to see it really soar. Rumy is not making that happen, so if better management is needed, so be it, as long as it doesn't cut me out. Maybe they can find a place for Rumy, but running the business end probably isn't it. Let him run the engineering side.
I have to ask, why would you have to sell your shares to change the board. All that they need is a majority if they can get a vote called. Many existing stock holders don't like the Rumy has run this company. If there was some way for Quinn's firm to post a website for a board change, they could get a feeling if the vote would go through for them. The challenge would be to get in front of the stockholders..
I wasn't saying that one would have to sell their shares to change the board, I was just saying as the ownership of the stock rests right now Quinn will not have enough votes to do it. Rumy, his board members and institutional investors who support him own well over enough of the stock to stop that attempt. Quinn's only other option in my mind is a hostile takeover which is why I ask what price shareholders are willing to take to sell their shares. Ultimately I think a takeover would also fail for some of the reasons listed above and I think the price needed to convince enough shareholders to give up their shares is too rich for these guys. So I ask everybody, how much would you want for your shares? Just wondering.
Dave, one thing not considered in your post is what effect a short squeeze will have on the stock price. Assuming Quinn would be willing to pay a premium to shareholders, by the time the shorts covered a premium could place the stock in the $30 area easily...We may be headed into the perfect storm....
I just read the St. Louis Dispatch article on ZOLT. That article echoes my thought that just saying no and back to business as usual isn't going to cut it. The price wasn't reflecting replacement value because Rumy has run it as his own. Now with interest shown from another team which has shown some success, the price is coming off the carpet. That team isn't going to go away nor bail out investors at pre 2008 prices. My guess will put an offer out there at somewhere between 18-24. It might get done around 22. Only a guess but that # might get the Funds to go along.
Only an opinion but considering whats built and running has to be worth at least 1 Billion. If the auto market steps in with big plans for CF then you can probably add another Billion. Have been told by a buyer of CF of a auto parts firm that auto will get going in a much bigger way in 2014 but that was one year ago. Still wondering if the CF frame of the recent VW concept car was actually made by Magma or not. It be helpful if anyone has info on the VW frame.
Well if you think the company should be valued at $2 billion and it's current market cap is only around $392 million, you're talking about a valuation about 5 times larger than it currently is or $55 a share. Now that doesn't take into account current debt which is around 94 million, but that would still leave us well above $50 a share. I'm bullish, but not that bullish, at least short term. Longer term if CF is regularly used in cars and other transportation to make them lighter and stronger, who knows how high it can go? But we don't know when that will happen.
I'm not arguing about the product, science or sales potential --- it's strong management that The Street respects and will pay up for - when strong management takes over you'll likely see much stronger equity prices here ... I've seen this fact played out with many companies ...
Not sure why Yahoo isn't letting me post this - but today's local Saint Louis paper has an excellent article on ZOLT and the prospect for managerial chg - recommend every on here read it ...