So 64% of the shares were tendered and accepted for payment. And though I haven't received my $1.00/share yet, I expect to shortly. So it makes no sense why the stock still trading at $0.85.
Well, they didn't bid for the whole company at $1, just a fraction of it. It is also trading for just slightly under the cash on the books at 12/31 as disclosed in the 8K. The business has been bleeding about $600K of cash a month for the last year, so it probably trading right around the cash on the books today. The company just told you that the network busines is melting down, so unless they can cut a lot of costs, the cash burn is probably going up. Hopefully PEEK will do a better job controlling costs than the ersatz Charles de Gaulle we had running the business before, but you can't blame investors if they wanted to see some actual evidence of that before crediting the stock for it. It is also not really clear that the current business has any intrinsic value notwithstanding the bright and rosy future that RDF-addled seekingthetruth insists is just around the corner. Clients are leaving, employees are leaving, the business has not been profitable for 5 years. It is now the cash on the balance sheet, less whatever the shutdown liabilities are plus whatever can be made of the NOLs, assuming they act quick enough to stop the bleeding - not a slam dunk.
##... The company just told you that the network business is melting down, so unless they can cut a lot of costs, the cash burn is probably going up...##
When you refer to "the network business", is it clear in your mind that you fully understand and mean Looksmart's own ad network or, the (so called), "intermediary business"?
This is part of the business that I have said for such a long time now - Had to go!
So as Looksmart could become totally independent (neutral) in conducting it's prime objective, the (global) "Distribution Network business".
equityval ..... You do know the difference, I assume? (As few do.)
##......... It is also not really clear that the current business has any intrinsic value notwithstanding the bright and rosy future that RDF-addled seekingthetruth insists is just around the corner. ..##
Hi equityval ....
In your post it seems (to me) that your reliance on and your complete faith in all that was disclosed within the 8K - has now suddenly become believable.
Why is this so?
As it certainly flies in the face of all that has been told to shareholders (and the market), and that has been Filed for SEC corporate governance - over the past 7 or, so years.
In my recent instapost [Looksmart's CEO To Step Down - Filing States Deteriorating Health Condition] specifically, in reply to Ben Plomion (VP Marketing & Partnerships @chango), I had suggested that:
"In the interest of transparency for both buyers and sellers (and way, less "BS"), it is now about time for ALL to 'show and tell', surely?"
And that ..."From today's Filing (it appears?), we still have a long way to go."
It's clear that I had felt it to be a load of ( pakapoo ticket-like) BS
Re; The Co's (addled) Resource Description Framework (RDF)
Again equityval ,,,, Why has it that (now), it all suddenly becomes a situation where the Co is stating it's true position? ...... Yet shareholders should now accept that all company statements over the past 7 or, so years, were simply (I'll use Oerhomonos comparison), Enron-like?
If this is the case (it wouldn't be hard to prove), shouldn't Looksmart's retiring CEO Mr Dexmier now be thinking of packing his bag for a holiday room along-side Bernard L. Madoff?
##.. So 64% of the shares were tendered and accepted for payment. ...##
There were approximately 8,508,647 shares that have been tendered which, together with the shares owned by PEEK's affiliates, represents approximately 64% of the total shares outstanding.
##...So it makes no sense why the stock is still trading at $0.85...##
Exactly what do you mean? Do you feel the stock should be trading higher or, lower than the $0.85 that you have stated?
Sentiment: Strong Buy
I guess there are 2 ways to look at this. One is that since Peek now owns 64% of the Company, the remaining 36% have no voice and no power and as a result, their stock isn't worth much. Based on that logic, $0.85 make sense.
Alternatively, Peek might want complete ownership and file proxies for a shareholder vote. With 64% of the vote in the bag, 100% ownership would become a sure thing, though I could only guess at the offering price.
I'll feel better after getting my $1.00 and may use the money to by more at $0.85.