Going private at what price?
Look at AMCF: offer is lower than book value. That is stealing the shareholders. Those who bought at above 5 would lose big. The AMCF CEO was buying many shares from open market, but the GURE officers are not!
They may come up with an offer of 2.5/share. is that something we should be excited about?
Nobody is dealing with these issues. Just hyping: going private.
Hey Dutch, I was pleased to see you work in the GURE comment on SA....feel free to post as much as you like about the company going private....BECAUSE IT IS....at least that's what I'm getting from all the recent data. I could be wrong about it going private, but I think I'm right.
LOL. Moron. I'm not misleading anyone. I already gave you the facts. Book value is $6.91 per share. This company is highly profitable with decent prospects so any offer below $8 is a rip-off. Clear and simple. Only dumbasses like you don't understand.
Nobody cares what a fool and scumbag like you believes.
I never say the offer is 2.5. I just say it is possible. My point is all those going private posters are just hypes. If the management is aggressively buying back, I would be more optimistic.
I don't want you to believe I am long or short. I just feel ashamed there are low-lives like you on the long side. What you are doing is misleading the longs.
You compare GURE with AMCF. It' completely wrong because:
-CEO and major holder of AMCF has a much higher percentage than GURE insiders, more than 55% of company's shares.
-GURE has faced lawsuits in the past and has much more small individual investors than AMCF.
So, company would have to deal with many new lawsuits:
For trading on insider information if they bought before a going private proposal.
For offering a price below book value.
-GURE hired Grant Sherman which confirmed GURE production. AMCF CEO didn't hired an appraisal firm because he wanted to offer a very low price. You can't offer the ridiculous number you mentioned after a valuation report.
-AMCF has the half EPS of GURE and its CEO offered $4.21. You mentioned only the book value but in term of P/E a comparison gives a price of $8 for GURE.
-AMCF is just one example among TWENTY companies.
Why don't you compare a potential go private offer with all the other companies like HRBN, CSR, CFSG, FTLK, SNDA etc?
-There is no reason to assume than an offer will come necessarily from the insiders. They said that they have been approached by PE firms. What makes you think that GURE chairman will accept an offer of ...$2.50 to sell his shares?
I did not sell anything. I just don't seem to be excited by those pumpers hyping going private. I sincerely hope what you guys hopr for come true.
You are right: GURE does not own > 50%. Things are not the same. But I would be more opitmistic if GURE is aggressively buying back shares from open market. But they are reluctant.
Is there any requiement on P/E on going private?
Bottomline is: the fact AMCF going private is not something to cheer about.
I am longgggg! But I feel ashamed being on the same side as you. You are the real scumbag!!
No guts to hear different voices. Your mom won't be proud of you, or you should find another mom to teach you using decent language!
Go to h*ll.
>> They may come up with an offer of 2.5/share
1) AMCF is hardly profitable
2) The BOD hasn't approved the offer yet
3) GURE's book value is $6.91 per share
If GURE is sold for $8/share then it's a rip-off.
Do your homework.
I agree that comparing AMCF to Gure in term of asset value and pricing is not the right thing to do as for example 40% of Gure book value is cash while only less than 10% os cash with AMCF, the cash flow generation from operations is way greater by share for GURE than it is for AMCF. These are elements used in the computation of an offer.
Again not sure that the going private route is the one that GURE's insider will take but a possibility and if they do, they could have to offer at least a price close to book value to get enough shareholders to release their shares.
Other routes are possible to ensure the valuation of the asset (that has been confirmed with the independent evaluation of their current production capacity) is better reflected in the stock price. For example the creation of a JV with a major Bromine player where GURE would bring most or all of their assets and the partner would match it with some of their assets or cash or both. This could be a way to help the stock price as a major validation of their value as seen as an outsider while allowing GURE Management to retain control of their Business.
I still strongly believe that GURE's Board is seriously looking at all these alternatives and actively engaged in finding a solution to this ridiculous stock price, several elements discussed this quarter convinced me this is the case and I wrote about them in an earlier post. Will they succeed is the big question but they have some assets that could interest various parties from PE firms to larger Bormine industry worlwide players.