This is such BS!!! Raina really screwed the sharehodlers on this one. Not only does he not know how to run PR, but now he has sold the company for a very weak price. I will be voting my 27,000 shares no to the merger and hope others do the same. If somehow the merger is stopped, I would like to see Raina removed as CEO because it is clear to me that he does not have the shareholders' interests at heart. I can only hope that someone else swoops in and makes a counter-offer which is more realistic.
I can't say anything bad about Reina, I would do the same in his position. I will also vote no. I want a piece of this company, its great! It sucks to have it go private to benefit only the owners. I am not sure whether there are enough people who support this view or if many longs will not just be happy to take 20 and exit this roller coaster. I can't blame them I suppose but hopefully people will consider the longer term in all this. This company is worth so much more, and as it grows it might be worth more then we can imagine at this point.
No question this is a growth company and Goldman being the smartest kid on wall street identified the value and quickly swooped in to make the acquisition. The winner is Goldman here now that their proprietary trading unit has been clipped by the volcker rule. They will easily make 100% returns on this company.
While I was surprised at the price, at the end of the day almost 10X EBITDA isn't that out of whack in terms of deal metrics. Remember, while valid or not that this was trading in the low 13s not too long ago.
stuart...agreed. I am a newcomer to trading (but not new enough believe 20 is fair value) and I have never been through an acquisition. I have very few shares, but I still want my voice to be heard. How does the voting process take place?
I think the only likely way that this merger is defeated is for some of the institutional investors to either vote no or make a counter-offer. I know over the last couple of months institutional buying has increased so maybe some of this new money will vote no.
I will vote "no" for my 89,254 shares, as well. I think the stock is worth far more, both on current intrinsic value and future growth potential. I'm also disappointed, although not all that surprised. Who wants to own or manage a publicly traded company in this day and age? Such a sad reflection on our SEC, specifically, and Federal Government, in general. As a private investor, it's difficult to maintain my faith in the fairness of the market in the face of such blatant manipulation for 2-3 years.
Aside from the "stuff" going on with weak price etc., could you kindly give me a thumbnail of what exactly happens in the case of a buy-out such as this. I've never held a company that was in this situation. If GS buys this company, do they simply "cash-out" the value of the stock to each holder? I owned shares of ADAM, which was bought by EBIX, and they converted my shares to Ebix. In this case, will shareholders be paid for their stock, or will our shares be converted to another "entity" where we can continue to own stock instead of receiving cash.
I know I'm asking dumb questions, but haven't experienced this situation before, and am not a frequent day-trader. Thanks for any responses.
I too will vote NO. I have been a long time investor with a substantial number of shares and was looking for a target price of 24-25 dollars. I don't know the reason(s) for Raina to sell out at such a ridiculously low price considering he was quoted in some interview that at the time Ebix was worth more than $30/share(?) Whatever the reasons, he will make out pretty good after the deal. I believe, if we are all united and vote NO, it might perhaps make some difference and we could get a little higher price than this. In any event, I am going to hold on.
Jedhir - you have been here a long time and I have valued your input on this board. What is your opinion of the sudden turn of events i.e., why the sale, why such a low price, why all of the manipulation etc...any insight would be appreciated
We'll have to wait to see what the major holders have to say/vote on this. Even 27K is too little of a say so, but this stock is worth at least $24 per share and $20 is far too much of a bargain for a LBO. I think there is a very good chance that someone else will make a better offer; I'm holding and would vote no to this deal with my few shares.
Very disappointed in the price, as well. I wasn't planning on selling a single share until the $25 range. Way undervalued, and results in a poor overall return (opportunity cost during a nice bull market) for my average holding time of 2 years.
One has to wonder if Raina did this just to ignite a bidding war? You would have to think that if Goldman really wanted to avoid another buyer coming in and torpedoing their deal, they would have offered more than $20/share. With price target of near $24/share, 52-week high of nearly $25/share and continued 20%+ annual revenue growth the offer is definitely a lowball number so it just doesn't add up, especially when you factor in the 45-day bid period. I suspect another offer may come and we'll get closer to $24/share in the end.