This is being offered by a current stockholder not MEG, so it is not dilutive. 6.8 million shares priced at $16.00. No one is going to pay market price to do a deal like that. I would think they would want "at least" a 5% discount. That would give a valuation of $16.84. Looks like we are in good shape. Any thoughts or opinions?
Closed Friday at $16.63 so I'm not concerned. Looks like a healthy pullback to me. We'll see over the next few trading days.
Here is an excerpt from last week's conference call. David Cohen from Midwood Capital chews out management for being unprepared. At least Marshall Morton is gone as he nearly bankrupted the company. Now Sadusky needs to unload the CFO Jim Woodward.
And our next question comes from Dave Cohen of Midwood Capital.
Dave Cohen - Midwood Capital
Hi, this is more of a suggestion than a question, which is given the lack of the ambiguity around sort of what this company looks like the inability from very, very experienced and knowledgeable analyst that actually hone in on the financial profile of the company near-term, I think management needs to take a very hard look at how it communicates what’s the profile of this company is.
I think there is some potential for very, very compelling free cash flow here. But it is really lost certainly in the first quarter as expected results and in the messiness that was just exhibited and it can’t be business as usual you really need to set some guiding post for investors to really understand the cash flow generating power of this company.
And obviously without pinning yourselves down since you're early in this merger, but I think you just need to take a really different perspective on communicating with the financial profile of the company is. So that's my two stance. Thanks for taking my call.
Vince Sadusky - President and CEO
No, thank you.
I thought that was a ridiculous claim to be green by the close. Well, at 12:20 the price is $16.11 down .22 from a low of $14.70. So, I hope you are right!
tradester... I understand the sentiment, but you probably should get in now. I don't know what is going to happen Friday, but this appears to be a legitimate buy in point.
I bought at the end of the day. $60,000 @ 14.41 = 4,163 shares. It successfully retested the Jan 20 low of 14.23. More than half the day's volume was in the last hour of trading. Seemed like people were buying fast and furious ahead of tomorrows big day.