Since there was not a single benefit, and apparently one significant disadvantage (being the 25% evaporation of the shareholders' equity value) to public shareholders in this transaction, it can only be deduced by simple reason that there had to have been a motive in hand for some or all insiders eagerly signing this deal to which shareholders were not privy. I say eagerly because it must have been signed in March, almost as soon as they retained their advisors on March 12th because they otherwise why would they sell at a reduced price, when the announced they were setting out for the purpose of enhancing shareholder value. This is from the realease: "Corgenix Medical Corporation (CONX), a worldwide developer and marketer of diagnostic test kits, announced today that the Company’s Board of Directors has decided to explore strategic alternatives to enhance value for shareholders. These alternatives could include, among others, possible joint ventures, strategic partnerships or alliances, a sale of the Company or other possible transactions.
President and CEO Douglass T. Simpson said, “Given the positive financial results recently reported and current share price, we believe that now is the right time to explore strategic alternatives. We will continue with our strategy of reducing cost, driving efficiency and pursuing opportunities provided by our cardiovascular biomarker technology and contract services business.”
Inverness Advisors, a division of KEMA Partners LLC, is serving as financial advisor to Corgenix.
And now 10:30 with 10 times the normal volume, still at .40. This looks to me like a block trade that was agreed to at a certain price and it is being done on the OTC. The volume is high but in a tight range so that is what I'm thinking.
I noticed the high volume today over 40000 shares and the bid at the close was .395 and ask .40. It is nice to see a little volume and have the spread narrow toward the ask! Ideally and this universe was designed to have ideal results, so I imagine IDND will soon begin receiving its orders from PepsiCo China and Coke India as they lead the beverage world into the 21st century by adopting the latest IDC aseptic tap technologies. Imagine! You may say I'm a dreamer But I'm not the only one and I hope someday you'll join us And the world will be as one. And we will be able to cash in on IDND at much higher prices and have reduced financial stress too.
I just want to say you are right about 'play safe'. I have learned to limit my losses and take profits, giving some respect to the basic technicals. It helps growth over time! In non-performing times I tend to rotate into one or two dividend stocks. But still learning and I am now considering using some articificial intelligence to help.
it is hard to take risk and stay safe. I had one bad 6 month period in 2009 where I was down nearly 60% but it was not long before I recovered and one period I was flat for a year but in general despite some very bad upsets in the last 8 years over all still worth taking those risks. Not for everyone though! I take risks I would not advise others to take.
That plus Platinum has started to move up off its RSI=30 to now RSI=35 and looks like MACD might cross up in the near term. PLG is also still in oversold territory with RSI=about 41 but RSI has begun moving up as well with Platinum strengthening slightly. Without company specific breaking news I think it will follow the price of platinum + palladium generally in the near term, and it looks like that is starting to improve. I am back in having bought some at 1.08 the other day.
Now BX is starting a big bet hedge fund to make big and selective wagers. I like that. That's what I'm talking about! That is what I try to do. It works well for me. Not counting my private equity I have just from public stocks done 29% average over 8 years, investing in only 1 to 5 stocks at any given time. If you don't make big bets and narrow your focus you won't get anywhere. Mutual funds and ETFs generally struggle to make double digits because they are just too diversified. Too many small bets. One private equity investment I made back in 2005 with all of my liquid wealth might actually improve that 29% average compounded return as it may start public trading this year or could be bought out prior as several companies are interested in their game changer IP in the energy sector! I have a solid chunk of my IRA right now in BX (my second largest holding there now) with only 3 other stock. Generally I have been always nearly 100% equity throughout since 2006. Cheers!
it could also open it up to trade at what it is worth which is north of .30, bud. If the deal is voided by the SEC it could start a bidding war. ERB would want to buy it because it would help their financial statements and expand their market share.
My vision for BX is for it to behave like the AAPL stock and be like the GOOG of the Finance sector so that each share slowly creeps up from the 30s to the hundreds and then several hundreds, and then everyone having to have some and it just keeps on being this amazing company that uses its wealth to get wealthier. It is the little guy's only chance at tapping the opportunities that are only available to the wealthy.
The lawfirm I retained is planning to stop the sale based on betrayal of fiduciary trust and nullify the deal to open it to competitive bidding - to where they can and should continue to shop around, or even just plain not sell it. Just keep growing the company - contain costs, and develop a successor plan for the old fogeys. Unless they can sell it for over $1.00 I would prefer that scenario. The case is pretty strong that they did not act in shareholder's interest.
King we have a solid case - but that doesn't mean the judge will be slanted toward the right decision. For whatever mysterious reason, I know judges often manage to make decisions which I think are incorrect. But we have many arguments that add up. There was definite deceipt regarding CONX' worth and prospects, and even value of the deal, as if .27 was a premium to its real market value when it was about 25% below the present and recent 90 day market value? They excluded competitive bidding which is not at all in our favor. They must think shareholders can't add or subtract. It is insulting to shareholders. Yet for some reason insiders were willing to sell themselves short. What did they do, fall for a hard sell by the first bidder? It could be they are the dumb ones as well. They have never done this before. With the new extended Eli-Lilly relationship and high profile EBola test kit, they are worth more than before the deal. The smartest thing they could do is say 'sorry, no deal' and move forward with a plan to cut and contain operating expenses as sales continue to expand. If they are looking to retire in 5 years, then start developing a sound successor plan. It could be they had very bad advice and their advisor was extremely pushy but personally I would say their advice did the oppoisite of what they were contracted for. They were hired to advise on how to increase shareholder value including a possible sale. In the end their solution reduced shareholder value by about 25%. Case closed. Cancel the deal. Continue as an operation. If you have a sale, do not consider unless it is at least a double digit % premium to the market price de jour.
No cost to you - win or lose. I think the more plaintiffs sign up the more support they have for a case. I think the primary object will be to stop the sale, and allow a possible bidding war. I hope everyone noted they (CONX) also waived their right to accept higher bids. How does that help us? Of course we'd want CONX to be allowed to take a higher more competitive bid. This is a free market world.
They also slant the benefits by excluding pertinent data. "The per-share price represents a 29% premium to the Corgenix average share price of $0.21 over the 90-day period prior to the Company’s announcement on March 12, 2014, that it was exploring strategic alternatives. " . OK so does that mean the 5 month period after the announcement did not exist? If you look at the last 90 days of trading we are selling at a 25% discount. No premium here for those of us who live in the present. Um..if you want to live in the past, why not go back to 10 or 15 years ago when it was over $1.00?
The law firms may have a corruption insider case as well. They will have to subpoena the trades of any insiders of both firms - selling / buying since the first announcement of putting the company up for sale. I wonder how many got out in the .35 - 56 range. If that wasn't insider manipulation then those higher prices following the announcement at least show the broader expectations that the company would sell at a premium. I am glad I sold at .35 and .45 but I still have over 50000 shares and had higher expectations for them (~1.00 anyone?).