Some people seem to forget that the proceeds of the rights offering added capital to the balance sheet. This is not the same company it was before the rights offering. It has substantially greater financial flexibility. Additionally, some big boys bought up the rights to lock in a low price. They could never have accumulated such an increase in their position on the open market without chasing the price up. Peter
The only reason your comment doesn't hold water is ... Why would he have bought all of the stock at $5.00 if he planned on letting the price drift lower and attempt a take under? If he truly wanted to buy this thing at 4 or so he would have allowed everyone else exercise their rights and THEN forced the price lower. He has all the inventory in the world to make that happen. You would then have all kinds of selling and he could 'save the day' by bidding some ridiculously low price for the company. I still think he's accumulating stock and will bid some quasi reasonable number for the balance of the shares. It just makes no sense why he bought all the right's shares and why the rights were so valuable a week before they expired. There is more to this story than we realize and I believe we will be enlightened shortly.
yes he could have let it drift to 4 but there would have been no rights offer to increase shares and get needed capital to keep it afloat. he has effectively gained market share at a fixed price and can still do takeover bid at 5 if it does go to 4. He is a smart guy.
I'm not a sophisticated investor by any means but I bought 2,500 shares today @ $4.68. I've been watching this stock go down for awhile and liked the fact that NG is up to $4.44. I think I read on Motley Fool awhile back that they make money with NG above $3. I also read that Wilber and Boone own significant shares and they have the clout to shake things up and increase stock price, to benefit shareholders. I also read that Wilber would buy additional shares back at $5, so it appears that he believes $5 is a discounted price. I could be missing the bigger picture, but with NG up, I am hoping for a good earnings report.