Yes I read the JV as very positive news, and after an initial pump, this has been dumped like a turd. There seems to be some price manipulation going on here, but perhaps I don't understand the whole picture.
Stating the obvious- the market did not react to the news yesterday favorably as many on this message board have stated. Anyone want to venture a guess or hypothesis as to why?
Thanks for the assessment- yeah I saw that article but given the low share price i wonder if they are going to try to tap the equity markets again. Probably best to hold off another year or so, but after that this could take off.
Haha I'm an ignoramus but you are the one losing your shirt on this stock.. The question I ask is the most valid question for any new investors, which you are not. You sound like a bitter long, too bad you got burned here.
If projections to return to profitability are met in 2015 and they are cash flow positive in 2014? Given the track record of AMRS the chances of this happening are slim, but if they do, has anyone done the analysis as to whether they have enough cash on hand to continue to ramp up production without doing another capital raise?
Done- I do not feel that it will be halted prior to the merger being completed. I have stated this all along. The worry for me is if the deal fails, holding it after the deal for an extended period of time (e.g.- a few years) is extremely risky, especially with a crooked management in place that does not care one iota about the shareholder.
When Mekong's points fall flat then he resorts to saying that I make no sense. My points are very clear and even an idiot can understand them.
You guys are arguing with yourself. In one sentence you say these guys are "crooks", etc., etc. and then in the next sentence you think it's "safe" to trust your money with them for the forseeable future (voting against the buyout and intending to invest your money here for years). Which one is it? How can they be crooks, and you think there is no risk that they will try to pull some sort of shenanigans in the future to pilfer your money?
Mekong let me also backtrack so you understand the context of the conversation- The whole point I am making is that the current share price of this company without a buyout is well below 6 dollars a share. The "book value" numbers thrown out by you and other longs reflect a pipe dream and are not reality, because you have not factored in the "risk" of holding a Chinese smallcap stock with unethical and possible fraudulent management.
No, you just don't get it. If the stock was truly worth more than 6.69 a share without a buyout then it would be trading at much closer to the buyout price now. Because if that were the case then whether the deal fails or not is irrelevant. That is why many times when you see a blue chip largecap stock buyout, the buyout price is close to the true value of the stock then it trades within pennies of the buyout price. You just seem awfully dense in understanding this elementary concept. So you want again to try to explain why the stock jumped upon acceptance of the buyout news and why it is not trading closer to 6.69 if it is truly worth more than 6.69 a share?
$10/share in cash? Are you sure the 100% confident the management hasn't pilfered it already or won't pilfer it in the future? How much will your shares be worth then?
"Any stock that just announced a go private to close 6 months later would be at least 40-50 cents below the buyout price". Do you really believe that Mekong? Why would it be 8% below the buyout price? Does a CD return 8% in this market? Or is it 8% below because there is RISK implied? Risk that it will fall if the deal fails?
Folks, caution against these ambulance chasing law firms soliciting clients on the message boards. There have been numerous fake IDs show up in the last couple weeks (as several new law firms jumped on board) bashing the deal. I would surmise that these are interns or other low paid staff working for these firms- particularly suspicious are the ones that show up out of the woodwork claiming they have "hundreds of thousands" of shares. Beware of these #$%$.
Total BS and you know it. A 1 yr CD pays 1% and you are telling me that it is normal to have a 8% return in under 6 months for "no risk". Not even a junk bond has that rate of return. You know full well the reason it is at this price is because there is a risk premium in case the deal does not go through, and if that were to happen the stock would fall. If the MARKET (not a bunch of greedy longs who don't know how to calculate risk in valuing a company) valued the stock at more than 6.69 than it would be at 6.50 or higher, easily.
Any longs care to speculate on this? So if it is truly worth $15 a share, then wouldn't it be trading at 6.60 now? Interest rates are paying pennies on the dollar. Could it be possible that the market is pricing in an 8% difference due to the fact there is still a small risk that the buyout is not completed, and if this happens the share price might drop?