less than 7.50, the number it dumped to after the last lousy qtr they reported which wasn't as lousy as this qtr and before they announced they would give no more guidance
you'll notice that the buyout rumors will spike the stock less and less everytime they go to that well
I owned WLT - same crap except their buyout rumors come every 3-4 months. Some times where there is some there is just smoke - sometimes there is fire so I'm not shorting.
I just think this thing will take out is 52 week low (as it should have already done after that CC without the takeout rumors)
I appreciate all the conversation though, I almost through caution to the wind and bought without doing a little more research. After reading the Glass comments I'm at least convinced of this, if he looked he changed his mind - nobody will convince me if you are thinking of buying a company that you would suggest the seller go shop themselves around right
Hey these boards are helpful sometimes, I had never read the Bloomberg article where Glass indicated an "interest" I only read the articles with unnammed sources about the $20 bid. I got excited but then I read these 2 quotes
“RDG has been in discussions with the company regarding its potential interest in exploring a takeover bid,” Glass said today in an interview
“Digital Generation should engage with potential buyers, including Extreme Reach,” said Glass. “We talked to other shareholders and they share our view.”
Does this mean that Glass was interested in making a bid or that he wanted the company to get a bid from somebody else? Or does it mean he explored the concept of making a bid and decided they need to find some other sucker to buy the company? Or does it mean he needed a quick pop in the stock at the end of the qtr so he came out with these odd hard to decipher comments?
add to this all the comments on the CC that don't mean anything when you really read them (could be they are trying to refinance debt, sell themselves, take themselves private or file BK)
Why all the chatter, if you're really trying to sell yourself you generally keep your mouth shut till the deal is done
Here's some good info re buyout. It does appear that mgt has confirmed that they're for sale. When and how much for, seem to be the questions at this point.
There is somthing going on here...
RDG Capital LLC, the New York investment firm that owns a stake in Digital Generation Inc. (DGIT), is weighing an offer for the advertisement-management company, said RDG founder Russell Glass.
“RDG has been in discussions with the company regarding its potential interest in exploring a takeover bid,” Glass said today in an interview. A decade ago, he worked as president of Icahn Associates Corp., the hedge fund of billionaire investor Carl Icahn.
RDG recently amassed a 4.9 percent stake in the Irving, Texas-based company, Glass said. Digital Generation, which operates a network linking advertisers to broadcasters and websites, rejected an offer of more than $20 a share from Extreme Reach Inc., people familiar with the process said yesterday.
except for one key factor
the shareholder base has been turned over since DGIT traded at 7.50
you have an activist investor that owns 4.9% and has actively rallied shareholder support around the idea of selling all or part of the company---i bet we hear from him again in the next few days which will serve to pump the stock
you have an insider that continues to accumulate stock well beyond 10% of the company
you have event driven funds that were waiting for earnings dust to settle prior to positioning for the results of the strategic review, etc.
even if no buyer emerges, there will be multiple $2 swings over the next month or so
i have traded around this for months and i now think a buyout of the entire company is unlikely...best case scenario is a breakup of the two parts, with one part going to PE and the other either staying public or going private to ginsberg...either way, this isn't dead money and the likelihood that this trades back up to 11 or possibly even higher depending on what news/rumors break, is a good bet
won't argue with your thoughts on potential of something happening (just seems like way too much smoke to me and for almost 1.5 years now)
ownership structure, problem is you have folks that bought in when they heard the takeover rumor and now as months go by with nothing happening they are getting antsy