In almost all cases that ive seen with a dutch auction tender offer, the shareholders are better off not tendering their shares.
The stock will usually rally after the tender offer expires and its very bullish if its not fully subscribed.
Don't know that ive ever see one done where the offer is at an all time high price but i think that is a good sign. I wanted to own this stock before but it was too thin, i think this may be the catalyst that gets some people into it. The earnings have been very good so its very justifiable for NATH to trade here anyway.
As has been noted here already, this could be a prelude to a going private transaction. They might figure that this is cheaper then going private and will either cause the stock to shoot up or they get some shares cheaper so that the eventual buyout is cheaper. Win/Win.
I wouldn't sell this for less then $24, a buyout should be higher then that but then who knows how long you have to wait. This is a nice neglected stock finally doing something so i wouldnt be too quick to bail on it.
I had one like this a little over a year ago.Sell @ 18 a share.I grabed my money & run.Later it went to 44 dollars a share. I think I will hold this one. Dr.John. Yes I,m in on NATH. Any comments anyone ???????????????
You have to ask yourself the question. Why now, and at this price? Insiders could be looking toward preserving their own jobs, suspecting that Nathans has become a takeover target, which most likely would mean a management shakeup. By taking the business private, and with insiders already controlling 47% of the stock, , self preservation might be the motive. In any event I'm holding on to see what develops. - MERK