Yoda, you made the prediction that they would dump the tech for peanuts, you are correct. What is left to see, is what the Cash burn levels stay at. Who stays with the company when the tech goes and how the cash is handled.
I remain cynical
This post contains forward looking statements that may be affected by the intelligence of the investors and or the proposed suitor.
Selling or dumping as you put it the software business, which is our only business, for peanuts was widely anticipated.
From the "thedeal.com" article on 9-11-02 ( strange timing ) we saw that DeutscheBank's David Garrity predicted a sale of between $ 5 and 10 million. Though not being a "professional" stock analyst myself, I could not see at this time of our stock market sentiment how we could get that much. Hence, in my 9-30-02 post my best guess was between $ 1 and 2 million, which was still a bit too generous.
Regardless, I am glad to see this coming to an end. We have all seen since the Q3-2000 earnings call ( another disaster ), that the stock with very few exceptions, always traded at below cash levels. Why ??? Clearly, other than an overwhelming management and staff structure, software sales and services seemed to carry a significant LIABILITY in terms of tech support etc. Even recently, with just 47 or so employees we were still trading about $ 2 / share below cash. Seems to me, the market was saying now as in the past that CLRS being in the software business was a huge liability, recently up to $ 32 million for the $ 2 / share times our 16 million shares.
Therefore, if we can remove a $ 32 million liability by someone paying us $ 1 million, then I am all for that. What is truly amazing is that in March of 2000 during the secondary offering, the market though cracy at the time, paid $ 115 / share which now the same market has valued at minus $ 2 / share or worse. So getting out at a " peanut " level, though still positive, is pretty good in my book.
I agree with you as being curious about future cash burns if any. I would tend to think, that we should soon see what will be left. The way I see it, there should be only two or three employees at most. JM to keep track of the money and one or two others with other incidentals. The question will be how " OUR " $ 100 million will be invested and how much in interest or dividends we will be getting.