the stock looks like it jumped in extended trading-not sure if that is an erroneous print or not. The takeout price is $7.54, so at the closing price of $6.55, buying the stock now implies 13% upside. That's not bad for three to four months. If WPRT shares keep dropping, the multiplier will simply increase to maintain the $7.54 takeout price. There is also an opportunity for another bidder to materialize, but don't hold your breath. Not sure if both sets of shareholders will vote for the deal, so that could be a deal breaker too
WPRT gets to acquire FSYS with absolutely no cash outlay, and immediately is able to capture $60 million worth of its cash. They (WPRT) are essentially getting paid $60 million to take the company for free. All they are doing is printing up some worthless shares, to do the trade. Is this illegal?
a white knight is never the initial bidder, so there is no way WPRT can be considered a white knight. A white Knight is a second bidder at a higher price
it looks like Luby's is trying to sell one of its closed locations in Tulsa, Oklahoma for a staggering $3 million. This illustrates the company's vast hidden value, stored away in its real estate holdings.
the stock is so oversold, it is laughable, and is due for at least a dead cat bounce as shorts seek to book profits, by buying to cover and bargain hunters try and steal a bottom. Not sure if the CEO will be buying soon or not, as after spending $3.3 million lately on Luby's shares, he might be all tapped out. One thing for sure, is everybody involved in this company, is making money except the shareholder's. That is not the American way!
Looks like we are getting a little relief today. I suppose the shorts are buying to book profits and bargain hunters are also trying to pick a bottom. In addition, the company is likely buying back shares too. The stock has simply come down too far, in too short of a time frame and is simply way oversold.
the company stepped in, by purchasing shares in the open market. That buying, stemmed the loss. Remember, they announced a $25 million buyback program.