Glentel Inc GLNIF

RE: Glentel Completes Acquisition of Wireless Zone

[Waterboy4]

I am still here. Quietly watching and evaluating. I am a little concerned on three primary fronts. One, this represents the largest debt load this company has taken on ever, correct? Two, the earnings of the Wireless Zone group look pretty bad. Margins have already been srinking over the rest of the retail group over the past few quarters and adding this to the mix will further drive down margins. Lastly and most interesting to me is why is everyone selling???There are normally only three primary reasons for selling a business you have built from the ground up. One is, you are retiring. Not the case here as management are staying on. Two, you are in toruble and you need to sell. Again, does not look to be the case here as they are all profitable. Lastly, the business has reached its maturity and could fetch the top dollar! I am apt to believe this reason most of all in these cases as this reflects what the division has seen already in Canada. Revenue growth has been atributed to more store openings only. As with all of these announcements, the devil is always in the details. I am pleased that they have closed these transactions quickly and will be reporting the combined financials in Q4 so we will get to look at the details. I think we saw some talk of GT being a perfect buyout position before. I think that is no longer the case. Too big and too diversified to be of interest to a domestic carrier. Bold moves indeed for the Skidmores. Since the moves have finally boosted my stock to above what I paid for it, I am a much happier camper than when the stock was in the toilet at $10...