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Premier Exhibitions Inc. Message Board

  • premierexhibitslong premierexhibitslong Apr 16, 2009 2:01 AM Flag

    Deal to be Rejected

    To get the legal stuff out of the way, full disclosure: I own shares of PRXI, I am not short the stock in any fashion.

    I’m sorry, in twenty years of investing, 5 years of it professional, today’s stock run up on this news is probably the most ridiculous thing I’ve ever seen. I actually think 99% of the people who bought today didn’t even read or understand what is going on. The fact that the stock ran up today, and then fell back after the official press release should tell you something. Many people read the release, and began shorting into the rally.

    Here are is the sad truth: (A) If this deal actually happened, the stock price will crash back down to 50 cents – this deal would be horrible for common shareholders (B)don’t worry too much about ‘A’, because there is literally ZERO chance that this deal will accepted by the PRXI board. (C) When people realize what is going on, we will be on our way back down to the 65 cent range.

    Do yourself a favor, take a few minutes to slowly re-read the Harris proposal. Harris wants to take over the entire company by simply buying out Sellers stake. No shareholder vote, no proxy, nothing. He also demands 3 boards seats (vs. Sellers two seats) and "control of all executive positions of Premier."

    If Sellers Capital were to be tempted and sell their shares to Harris, I would dump my shares IMMEDIATELY, as would every other significant shareholder that I know.

    This company is on the verge of bankruptcy. Repeat,this company is on the verge of bankruptcy and Harris's deal does nothing to address this fact. Harris buying shares from Sellers doesn’t change this. Remember, the money would go to Sellers Capital, NOT to PRXI. So the end result is that after Sellers sold his shares to Harris, we would then have to undergo a massive capital raise. Harris’s deal to pay premier 5 million per year to manage the titanic assets is also a complete joke and doesn’t even make sense. Harris proposes that he dilute us all by granting him stock and warrants, while he only pays us 5 million a year to run an exhibit which will probably make him 5 times that amount?!?

    Take a few minutes to carefully read Premiere’s response to Harris’s offer. They are being polite, but definitely hinting that his offer is outrageous. Check out these quotes:

    “Although the offer has been made to Sellers Capital LLC, only Premier's board of directors could agree to the extraordinary step of making board seats or executive positions available to an outside party.”

    Yeah, if Harris were serious he would have hired an attorney who would have told him that Sellers doesn’t even have the legal right to accept his offer.

    “Harris has not indicated to Premier how these offers would be financed”

    This translates into : “We are very doubtful that Harris can actually come up with the money.”

    Most Premier shareholders bought their shares at over $5/share. The only way we will make our money back is over the long run, with a long term strategic turnaround. Not some fake gimmick that Harris and Geller probably concocted to generate a short-term pop in the stock.

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    • Hi,

      I agree with the first post about the weird nature of the offer and I doubt it will go anywhere. However, is the market reaction wrong or exaggerated? I personally do not think so.

      When I look at this offer, I go behind the absurd terms offered (buying 16% of the company and getting all the executive positions??? Really???) and focus on the Titanic's rights part. This is how I see the thing: Michael Harris was COO of RMS Titanic and worked on several onsite expeditions. Therefore, dwarf-tossing acts might be his hobby :-), but I assume he has a better knowledge about the artifacts than the average investor. To go back to the agreement, he is basically willing to pay $5M/y for five years to manage the Titanic assets, which means, a guy with descent knowledge of the situation he's trying to get his hands on the Titanic’s assets ON THE CHEAP for $5M/y. The natural question becomes: How does that help us evaluate how much these assets are worth? To be on the safe side, we will assume that Harris would only breakeven managing the artifacts (i.e, the asset will produce CFs of only $5M/y). Discounting these CFs in perpetuity at a decent discount rate of 12% brings us to a value of $41.66M for the Titanic’s assets. Now this quick evaluation is as far as you can imagine from being precise, but I think it adds some substance to the thesis that there is hidden value in PRXI.

      This offer is amateurish, but I believe it might help the stock by bringing other investors to look into the company and ultimately unlocking the hidden value of the Titanic's artifacts.

      P.S: Somebody yesterday suggested “that (the stock) is being manipulated by a dwarf-toss promoter and a blogger”. I assume the blogger in question was me. Please do not question my integrity, especially when your accusations are baseless and nonsensical. I posted my quick analysis of PRXI on 03/12, how was I supposed to know an offer would be made more than a month later??? On this board, I only posted a link to my blog on 03/15. No inflated comments, nothing… Yesterday, when the offer was announced I DID NOT POST A SINGLE MESSAGE as I was waiting to read PRXI’s side of the offer. Please double check your facts next time.
      Olivier (the guy who writes the eccentric investor)

    • ru working for the people who want shares cheap? ur an idiot.. the stock is going up

    • The "deal" sounds like a comical joke.

    • I agree that the offer wreaks of some type of manipulation. Especially since the Virginia court case should be ruled on shortly involving the additional 3500 artifacts...so the timing of the offerr in conspicuous at best and disigenuous at the worst. I guess time will tell. Reminds me of Gordon Gecko's famous words uttered in the great movie Wall Street:

      "If you're not on the inside you're on the outside, pal."

      • 2 Replies to alahendrix
      • Some things never change.....negative attitudes. If you want to know the answers to a question why not ask the person...i.e...Me?

        Go to my website www.gmichaelharris.com

        The LOI will be up on my website in a couple hours, but to cut to the chase, I did not ask for all executive positions at PRXI...only the positions that Sellers controls. To my knowledge that’s only the CEO? Don't want any last second new hires, as far as the Board seats go, 3 of Sellers Capital boys are in those seats, for $15m I want their resignations, the remaining Board of course would have to decide who to fill the empty seats with but considering I could give 22 years experience and $15m reasons why that should not be a difficult question to answer. Second, I did not ask for one million shares. I ask for one million options. The RMST deal not only gives the company a guarantee but I would pay for ALL costs! All means all and that’s all, all means, in other words...Exhibitions, Conservation and two Expeditions over the next 5 years to recover more artifacts which increase the asset base for the benefit of the shareholders. Not to mention gets Titanic back into the global spotlight for the 100th anniversary coming up. I want to buy Sellers shares so we don't dilute the stock by taking out a convertible loan and end up diluting the shareholders into oblivion! It is no secret the shape the companies is in....where do you think the money will come from? Do you think someone will loan the money for free? I'm thinking they need about $15m to keep from drowning ASAP...so how do we pay for it...20, 25, 30 million more shares. Don't kid yourself, your stock won't be worth $00.50...more like 00.25 or less sweetheart. O' and by the way if any of you are good at math that would give who ever does the deal...50% of the company. Game over ladies!! I'm trying to protect the company. But hey, what do I know, I could be wrong?

        I am a founder of this company, I created Oceanic Research and Exploration (ORE) in 1987, and hired George Tulloch who formed Titanic Ventures Limited Partnership (TVLP) and combined both companies to form RMS Titanic, and Inc. This is not my first Rodeo boys and girls. I have spent the last 22 years of my life dedicated to protecting Titanic for future generations and have bled blood sweat and tears so that you all actually have a stock to buy and the right to insult me. Which one of you is ready to step up and commit your life and Family resources like I have...my friends, my family and my Lord and Savior are always by my side. Perhaps someday you will be standing next to me as well.

        God Bless,
        G. Michael Harris
        President/Expedition Leader
        WLM, Inc./Titanic the Experience

      • BTW, the original post on this thread is wrong stating "Premier is on the verge of bankruptcy and this deal does nothing to solve this." That is wrong: the offer is CASH and stock from Sellers. The cash would solidfy the balance sheet...on bad terms naturallly.

    • yeah, I agree with your post. That's why I went short today @ 1.30. Covered half before close. Will cover the rest tomorrow. Will short more if rises tomorrow.

      This is a no brain short. Market totally misunderstood this "buy out" offer.

 
PRXI
0.66-0.02(-2.94%)9:30 AMEDT

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