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ZAGG Inc Message Board

  • swcm2013 swcm2013 May 22, 2013 3:15 PM Flag

    Thoughts on Deal Terms? What would it take to say yes?

    Give me $3 a share and a share of LOGI, effectively over $9. LOGI has enough cash on hand to do this, especially when factoring in the cash balance at ZAGG. I'll sell off my LOGI share of course, but that deal would not damage their stock price at all and be good for Zaggies.

    I just looked at their balance sheet, $450m sitting on cash on hand and they have a market cap of like a billion dollars. That's Apple like cash hoarding right there, they want growth, here you go. Its actually a good buy for them, they could use ZAGG's growth and diversification since they have nothing else to invest their cash in apparently.

    What would it take for you guys to vote yes? While its possible to get pure cash, I do not see that happening. An all stock or hybrid offer with a higher price is more likely imo.

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    • Keep in mind, that the gossip of a deal with Logitech has been around for ages.

      Whats make it more realistic this time?

      Could it be either a long to create interest or a short causing it to go up so he can short and then drop it?

      I put an order in this morning for an affordable amount at market (turned out 5.23) Time will tell if that was a good move or not.

      • 1 Reply to babafollower
      • This is a total rumor, be careful making any money moves on this.

        I give it some cred as what is different this time is that ZAGG stock price has been beaten to a bloody pulp while at the same time LOGI has nearly half their market cap in cash on hand. In the past, I would have demanded $15 for a ZAGG buyout, now...give me $9, and I will take it. The shorts have done such a good job obliterating every long in this that when combined with management's failure last quarter, a deal can be done. LOGI is also beaten up but their cash hoard is not beaten up. And so you see where the potential deal comes from.

        Interestingly, if LOGI does not do a deal, I think they become a target of someone else, like a PE Fund. After researching their balance sheet, they look ripe for a takeover. 50% of your market cap in cash? Self financing deal...

        Although as a Swiss company, there are challenges to doing it (prob why it has not been done), but there are alot of yield starved Swiss investors capable of taking that on.

    • I think a real offer on table...Yes for 7.5 or above..

      Sentiment: Buy

    • I would vote yes to a deal if I was getting $9/share in cash and/or stock.

    • Unfortunately I don't break even until 10.20 (been trying to recover since the 16+ days). Clearly I'm not satisfied with 7.75. At this point I'm hoping their board just rejects it, knowing the company will recover substantially over the next year.

5.05Jun 29 4:00 PMEDT