DRWI - $14.3MM market cap, CRNT - TWENTY TIMES higher! Is Ceragon worth that much more than DRWI? Is DRWI undervalued? Is DRWI just plain being manipulated to force a distressed sale of the company? If a distressed sale does indeed occur, the vast majority of shareholders gets shafted. I guess it's better than Chapter 11, as you can see below:
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Dendreon Corp (who filed for BK in 2015) gets bought for $500MM by Valeant:
https://www.geekwire.com/2015/valeant-buys-bankrupt-drug-maker-dendreon-for-495-million/
2 years later, the same company gets sold for $820MM. A cool $320MM profit and the shareholders of Dendreon got ZERO:
https://blogs.barrons.com/asiastocks/2017/01/10/valeant-to-sell-dendreon-cancer-business-to-chinas-sanpower-for-820-million-cash/
It reminds me of Corel, how something similar happened. Sold for $1.05 in 2003 to insiders then IPO'd later in 2006 for ~$20/share...
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In August 2003, Corel was bought out by the
private equity firm
Vector Capital for $1.05 a share (slightly more than the cash in the company). The company was voluntarily
delisted from the
NASDAQ and
Toronto Stock Exchanges. Some U.S. shareholders alleged the management benefited from the buyout personally while the buyout price was too low. A lawsuit was filed in the U.S. to stop the buyout and was unsuccessful.
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-> refer to: https://en.wikipedia.org/wiki/Corel AND
-> https://www.marketwatch.com/story/corel-corp-files-184m-ipo-for-trades-in-us-canada
It makes one wonder how the unsuspecting public, i.e. Main St. gets completely shafted by those shady guys with their pinstriped suits and ju jube eyeballs, i.e. Wall St. Eh?
One would suspect that this might be a ploy to acquire public funds via people's 401ks, RRSPs, etc. There's a reason why an employee can only invest in certain mutual funds wtih his emplolyer! Take a small piece of the pie from hundreds of millions of people; the skim adds up quickly.
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Sadly, I'm waiting for Dragonwave to be taken out for next to nothing (a distressed sale) shafting Timmy boy of his $21MM investment; the vicissitudes of being an independent investor! Oh joy!
Collusion, mendacity, complicity - the tools of their trade. What tools are YOU going to use? ;)
Cheers,
JJ