GREY:SCSZF - Post by User
Comment by
newcomer21on Aug 09, 2002 3:53pm
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Post# 5349052
RE: Letter of Intent - Example
RE: Letter of Intent - ExampleFrom somewhat bitter previous experience, it is wise, I believe, to treat letters of intent as mostly promotional rather than substantive. The share price reflects the true current value of such a letter of intent. For many good business reasons, plans and priorities can change and what appeared to be a very strategic move six weeks ago can suddenly look unattractive.
For every good intention there is a vulture and given the revenue dissappointments of the last quarter by SCS, these vultures are flying just a little closer to the ground right now. Why make a deal with SCS when it might be cheaper to buy the whole company in six months when it is forced to raise capital and dilute itself or accept a painful buyout to avoid insolvency?