Maybe the reason for wanting to "re-value" the company stock options??
Also, from the recent 10Q:
Our cash, cash equivalents, and short- and long-term investments totaled $142.4 million at March 31, 2016
So, if there is an offer @ $600M, wouldn't Genband's net cost be $457.6M?
Just for old times sake. I think this number came out last night:
And, looking at the trend over the last several months, the shorts have clearly been using the low share price to cover:
T. Rowe Price's Q1 holdings report came out about 1/2 hour ago, and looking it over I don't see any SONS shares (could have missed them). IF they no longer have SONS, that would imply that they sold 1,224,528 shares of SONS in Q1.
Just now looking thru the 10Q for the cash & equiv. number, I came across this little tidbit:
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2):
194,600 Average Price Paid per Share - $7.37
I'm also looking to see what kind of NOL SONS has - that could be a big factor in a merger.
They're showing 1,013,172 shares, up from 527,489 shares. My thesis that one or more of the big 'tute holders bailed last quarter is now in question, but we've still got a few to go...
Dimensional's HR for Q1 is just out, and they show 1,901,383 shares of SONS as of 3/31 as compared to their 12/31 holding of 1,641,624 shares. They added 342,192 shares in Q4, so they've added 600K shares in the last 2 quarters.
Benzinga saying 500 Oct $8 puts bought. Previous open interest was 10. So it's possible part of yesterday's downdraft was some kind of hedging strategy if not an outright short attack.
Vanguard's holdings report came out this morning, and it shows they held 1,980,706 MLNK shares as of 3/31. This compares to 1,541,034 they held at the end of last year, so they've added almost 440K.
Wouldn't be surprised to see more. This is what happens when a stock hits either the add or delete list for the Russell indexes. Think of all those index funds out there who have to adjust their holdings.
We know the quarterly report is due in about a week, so maybe this is speculation or a leak, or it could just be a big buyer positioning themselves in a oversold stock. We've been waiting for a loooooooong time for MLNK to make a move on the acquisition front, so it's possible that something is going on there - the Street usually knows before we peons get the word. At any rate, it's nice to see the share price up from the 52-week low we hit a couple of days ago. Share volume right now 355K, price $1.58. Good luck to long-suffering MLNK shareholders.
I told you guys there would be big volume today due to the Russell rebalance. MLNK stock continues to trade some big blocks after hours. Right now today's total is showing at 3.1M shares.
From the release:
The Company intends to invest approximately $20.0 million over the coming year in specific actions that are expected to improve annualized EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) by approximately $32.0 million. Many of the investments the Company will be making are process, people and systems oriented, and are part of an organizational redesign that aligns resources behind client needs, rather than by department and geography.
The programs unveiled will be funded through cash on hand, anticipated proceeds from the sale of ModusLink Corporation owned real estate, and existing bank facilities.
I think a $32M bump in EBITDA would be huge, moving MLNK well into profitability. Notice too that they are saying the program would be funded thru cash on hand, real estate sales & bank facilities. That seems to leave room for the acquisition we've been speculating about for some time now.
The Company anticipates it will incur restructuring charges of approximately $12.0 million in its fourth quarter of Fiscal 2016.
Fiscal 2016 ends July 31, so we'll see another hit to earnings when the 10K comes out on or about 14Oct.
The preliminary lists for the Russell 3000 index are out, and MLNK is on the delete list. This might explain some of the recent downward pressure if some funds are front-running the reconstitution. It's final next Friday, so expect some heavy aftermarket trading in several securities Friday next week.