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?
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.