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  • garsch garsch Dec 14, 1999 12:33 PM Flag

    Re downward price pressure

    micro00 wrote:
    <no major acq. in works. Why
    do an acq. when your running full
    out?>

    First, so you can read it for yourselves, here's the
    link to the amended registration filed on Friday the
    10th.
    http://www.edgar-online.com/bin/edgardoc/DocFrame.pl?doc=A-26058-0000912057-99-0
    09015&fmt=text&nad=&nav=1&x=62&y=17


    It's a registration to sell $500 million in "DEBT
    SECURITIES, COMMON STOCK, PREFERRED STOCK and WARRANTS" as it
    says in the title of the registration. This isn't for
    employee stock options.

    Here's the first two
    paragraphs:

    "We will provide specific terms of the securities
    offered to the public in
    supplements to this
    prospectus.

    "This prospectus may be used to offer and
    sell securities only if accompanied
    by a prospectus
    supplement. The prospectus supplement is more specific than
    this
    prospectus and to the extent information differs from this
    prospectus, you
    should rely on the information in the
    prospectus supplement. You should read
    this prospectus
    and any supplement very carefully before you
    invest."

    A little further digging reveals:

    "Our
    growth has been achieved, in part, by acquisitions. As
    part of our
    overall business plan, we may from time
    to time consider strategic acquisitions
    of other
    companies or investments in joint ventures that we believe
    can benefit
    from our operations, management and
    access to capital or enhance our
    relationships with
    existing or potential new customers. Our ability to grow
    by
    acquisition is dependent upon, and may be limited by, the
    availability of
    suitable acquisition candidates and
    capital."

    Management will not tell you in advance of
    any acuisition in the works, as that would be
    illegal. They have to make the information available to
    all at once.

    An offering of this size would
    necessarily be dilutive. If there are more shares
    outstanding, then each share is worth less. Granted, there
    would be more cash in the coffers, but think about
    earnings per share, cash per share, etc.

    Let's not
    invest blindly, or wish
    blindly.

    garsch

    (Long, BTW)

 
CTS
17.65+0.02(+0.11%)Mar 27 4:02 PMEDT