As late as 3/4 you issued a "buy" recommendation to us on CO. On 3/19 you have turned bearish. Would you be so good as to share with us the information that caused you to go from "flip" to "flop". You wwre one of the ones that told us about the "good reputation" of Wingate. Is it so?
<<Would you be so good as to share with us the information that caused you to go from "flip" to "flop".>>
I think that the stock is probably undervalued at these levels, but after reading the fine print it appears to me that the diluted share count following the transaction ("Post Transaction Fully Diluted Shares") will be much higher than represented by BGL's (Brown Gibbons & Lang) analysis. BGL estimated 20 million shares for this number but I now believe the number is more like 26 million. The dilution would have reached this figure or higher in a few years anyway, but this poor representation of the facts reflects poorly on management. Thus what Wingate plans to do with management has become more important to me and I am waiting to see what happens. They don't neccessarily have to replace everybody but they at least need to take an active role. On a positive note, the level of disclosure in the quarterly SEC filings has improved, so perhaps Wingate is already having some influence.
<<You wwre one of the ones that told us about the "good reputation" of Wingate. Is it so? >>
All I know about Wingate is what I gleaned from checking out some of the companies in their portfolio listed on their website below. I would encourage others to do the same. It appears that some companies did fairly well but there was at least one bad apple (I think it was the manufactured home products company, which got killed in the economic downturn).
re the share count--if you figure on exercise of all warrants to be issued over time the share count is a lot closer to 35 million than 26 million [confirmed by Wingate people] We have been royally screwed;too bad my negative protest vote was to no avail.