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Plumtree Software, Inc. (PLUM) Message Board

  • dcomus dcomus Feb 11, 2003 10:28 AM Flag

    91.5M Market Cap????

    This company -- the market leader in enterprise portals -- could almost be had for free considering its cash position and $0 debt. Why is this company not being bought or taken over at this price? Very strange.

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    • Good question, dcomus;

      In this current environment, an efficient little company like PLUM with earnings and an established customer base would seem to be an outstanding pickup for a larger player wanting a bigger piece of the portal market.

      What do you make of the refusal this past Fall of the $5 buyout offer?

      I know for a fact that the original IPO price was supposed to be in the $15-$20 range, but was forced down by market conditions.

      Perhaps the brass honestly believes the company is worth at least $15 and is unwilling to let go at these bargain basement prices?

      Let us know what you think, you old rosy bump you.

      • 2 Replies to lancermole2002
      • The offer last fall was smoke and mirror by an organization with no track record. Moreover, the offer was totally leveraged. Consequently, tunring it down was probably a good decision.

        The original IPO was priced at 13-15, though was cut back to 8-10 and went out at 8.50, as I recall.

        Maybe the tide will change when the economy turns around. Until then, PLUM and companies like it need to focus on execution and not on the day-to-day stock price fluctuations.

      • Lancermole:

        I have a similar view as you. This company will be bought at some point -- maybe this year. I was also aware of Plumtree's recent refusal of the $5/sh bid offer. A very good sign indeed! I expect it to be sold in at least the 8-10 range. I'm holding. This is the kind of company that will trade in a tight range for some time but will then suddenly skyrocket. I have learned to pick good companies and then be patient. I did this recently with FHRX after buying a bunch in the 3's and selling in the 8's.