There is no way that FSYS shareholders will vote yes to getting acquired for 1/2 the price that their shares were ,before last November's tender offer. That would be absolutely ludicrous.The fact is, FSYS can do just well in the low price oil period, just fine on their own. They are producing $10 million of EBITDA per year, have no debt and almost $70 million in cash and short term investments. WPRT on the other hand, definitely needs a cash infusion because of their high debt levels and lack of profitability. The only people that win on this deal are WPRT shareholders, and they win big at the expense of FSYS shareholder's, who lose big. I thought most transactions had to produce a "win-win" scenario, before a deal could be transacted. I guess I am sorely mistaken.
I need to get something off my chest here and it revolves all around $FSYS. I realize this ticker was eliminated this from the dirt cheap value portfolio over a month ago, due to its pending takeover by WPRT...but things simply are rotten in Denmark
Let me explain: Prior to the early November news of the takeover, FSYS was trading at about $7..today it trades at about 45% less or near $4.00 mark, based on a 2.19 stock exchange rate into WPRT shares. How many takeovers have you heard about, where the takeover price is actually 45% less than the pre takeover price?
It is highly irregular and frankly never happens. Hopefully FSYS shareholder's will vote this dubious, crooked deal down. The fact is FSYS could easily weather the storm of low fuel prices, because of its pristine balance sheet. It has no debt and about $70 million in cash and short term investments. It is also cash flow positive, as the company expects fiscal 2015 to generate EBITDA of $10 million.
The only winner of this deal is WPRT. They are debt heavy and are burning cash (no EBITDA for them). They need FSYS way more than FSYS needs them.
The bottom line? this deal needs to be stopped in its tracks, and stopped hard. FSYS was a $30 stock a few years ago, getting $4 today is complete #$%$.
a very cheap stock price is just what the Dr. ordered for top management. This will enable them to purchase the 66% of the shares they do not already own, and take it private. The financing will be a cinch, especially considering the real estate value, will exceed the required loan amount. How can you lose with that proposition? In a year or so, management could sell the company, at three times the purchase price, via a IPO
GMCR is JVA's ( Coffee Holdings Company Inc.) largest customer. Look for JAB to also acquire those folks in a $60 million deal, according to the latest Seeking Alpha take.
we won't know anything until the 10K is filed next month. The income statement will show the new # of shares outstanding
Buy the dip! This one could easily fetch a 50 cent premium in a buyout deal. The shares have pretty much given back all of yesterday's gains and then some, after a 15% selloff.
The drop in oil prices is what is tanking these shares. As a result, a new bidder will come forth with a $6 cash bid offer. The stock has just gotten way too cheap and somebody will exploit the situation. The spread between the cost of gasoline and natural gas is still the same. That's what counts. In addition, the benefit of producing less emissions form natural gas burning is paramount.
the whole coffee sector should get a nice jolt today. That huge premium is almost unheard of. I bet Einhorn is feeling mighty low about his short position. We could see JVA jump as high as 20% today in reaction to the GMCR news.
Anybody that owned these shares pretty much lost everything. Grand theft is what comes to mind. Shame on me for trying to catch a falling knife. You'd think I would be wise enough by now, not to fall for such a sham.
where is that tiny little company gonna get the money? who on earth would finance them? The fact is, if they did try to buy them, they might attempt to bid under the current market price. This whole thing sounds so ludicrous.