my questions are as follows:
1) A few weeks ago the stock jumped from 4 cents to 8 cents on the announcement that they actually their "first" customer implementation. Sadly it sank beck and then some (to within 2 cents) within days. So, why is this any different now?
2) Maybe my first question and what happened is the answer to this question, but why, if this is such a great deal is there not the volume we saw two weeks ago or the spike in share price?
Should I assume, before averaging down some more (I somehow feel few are buying upward from the low) that Joe will soon, just like most magicians, pull the rug or the tablecloth out and maybe lots of furniture, glassware and other stuff will fall over?
More credible than the guy (YOU) that has been defending Joe and this company since like forever.
I admit that Ants had a great idea. But the execution has been so unbelievably bad that it speaks for itself.
Could I have done a better job? No...but I didn't take a few million in salary and stock from this company like your boss Joe.
<Where you been? Yeah, you're credible>
go to the raging bull board for ants, and you will get a lot of fluff and spam by brokers that dont know squatt and want to scare people into selling or just want some info that they dont have
get into leather
if not then get into OIL
So here is a thought, most transactions for the purchase of a small tech company by a big one are stock sales. Stock sales are nice for shareholders as their shares in the small company are integrated into the shares of the large company based upon the purchase price and you then own shares of the purchasing company. Stock sales carry with them the liability of the smaller company so that the larger company becomes responsible to all of the smaller cos creditors.
In an asset sale, the larger company is just buying the actual assets of the company (equipment, IP, etc.) not the stock. No liability flows to the new company. they buy the goods and walk away from the smaller company. The smaller company is then left to pay off any debts and obligations it owes (loans, executive bonuses, etc.)and then IF there is any money left, distributes it to the shareholders based upon the number of shares.
actually, the more I think about this the more it is troublesome for shareholders....
If I buy your assets only, as you indicated, I am left with all else including plant, machinery, office, debts, stationary, and employees. Even if cleaning up all that is not a large sum, the firm is left with money, BUT...........there is no obligation to distribute this money to the shareholders.
Granted that everyone will look at the $40 million or probably a net of maybe $30-35 million and immediately value the firm based on some multiple of its cash value. But what will be left after the sale of assets. All of the junk listed above and whatever is inside the brain of the CEO and other employees, assuming they have not signed a non-compete clause or equivalent.
Furthermore, what is to prevent the Board of Directors from granting Joe a $5 million bonus or whatever for coming up with this deal. Or for spending the money either wisely or foolishly and leaving nothing for you and me.
As is not appears, those who were mentally spending their 24-34 cents per share this morning might not even get a dime..... or a nickel....... or even a penny.
I like to know who the 3rd party is. This will make a big difference in the way of share price, I hope its not IBM, rather than HP, Oracle, etc, and get a better price for our shares. Still would like to see the 3rd party come out with a PR saying that we are in a buying mood, and to let other database companies know that Ants is in Play, you want us, pay the price.