The previous Dana shareholders were lied to and the wiped out and now Dana teaches new shareholders about trusting Dana's representations to shareholders. Dana screwed the old shareholders
The article states new Dana stock now.. "....half of the $22 the firm projected."
If Dana treated old shareholders by promising that Dana was "enhancing their shareholder value" and that old shareholder should not sell their Dana stock for the $8 a shared offer... and then Dana's restructuring program was working and would enhance shareholder value, and then Dana wiped out ALL the value of old Dana shareholders and gave them nothing.... THEN NEW Dana shareholder should not expect any better respect for shareholder investment in Dana that those of us who were lied to and then wiped out by the attitude of Dana corporation toward their responsibity to Shareholders.
So now the article estates that NEW shareholders were told by Dana that the Dana stock was projected to be worth $ 22 a share ( see article link ) and now it is half that value. This is not the way a company who Shareholders can trust treats their investors.
If the SEC is going to investigation other companies for blatant misrepresentations to shareholders Dana should be on that list.
A new board at Dana doesn't change the investor image of Dana by not addressing the screwing of previous investors. And I doubt that those holding the new Dana stock are happy with having been told that when Dana stock entered the market it would be worth $ 22 a share and now finding that Dana projection to be a grossly exaggerated statement.
--------------------------------------------- Excerpta from the above link: "....... its price is only slightly above half of the $22 the firm projected. "
"I would imagine that there are a lot of investors who are extremely mad at Dana because of what they did to the shareholders during the bankruptcy," said Dock Treece, of Treece Investment Advisory Corp. in Sylvania Township. "
Stockholders were given no compensation.
"............experts said people may be wary that the firm is still dependent on the sale of automobiles and that industry is struggling.
"Dana spokesman Chuck Hartlage said the company would not comment on its stock price. Its annual earnings report is expected in March, he said. "
"Frankly, I thought there would be more demand," he said"
They really pushed buying the stock on the employees as well..always telling us how great the Employee stock plan was etc etc. When they promised us all kinds of new opportunities what we got was layoffs, and now we lost all the money we had invested in the stocks as well as our jobs.
Look for some "rosy" numbers on the first quarter earnings and a big "Pump and Dump" push to get the price up so the secured creditors and upper management who actually own what stock is out there to make some money and let someone else own this turkey. The same analysts that said REITS (invested in sub-prime lending) were the way to go will champion this goose as revitilized. Do your own research and don't believe everything the mostly wrong "Experts" are saying.
There is a catch 22 here. The Current holders of the stock aren't going to sell until the price climbs. The price isn't going to climb until there is investor demand for the stock. There isn't going to be investor demand for this stock when the current holders make clueless decisions like putting someone on the BOD who has spent an entire career proving they don't have the first clue about business or even capitalism like Dick Gephart. How many of the other BOD members are also clueless?