RE: RE: RE: RE: Insufficient Offer ome good points december. I am presently going through a fund raise process for a new company and an evaluation process for a successfull previous startup and it is true that the big boys and smart money will absolutely not value you at what you "say you can do" but what you "have done". In this case CRK's management have zero street credit as they have broken soooo many promises and missed sooo many deadlines. No one believes Cosmo will be successful so that is why the SP was trading at .32$/share and why luxor can make an offer at .56$/share.
I believe 100% that this deal will not go through at .56$/share. The offer is reflective of the current value of the company so I think its unlikely we will get a better one before Jan 31. You do bring up a good point about free publicity and putting them on the map. This offer gets alot of companies looking at CRK as an acquisition target. They are doing there DD now. This process takes months (took us 3 months of investor DD to raise 1 million) I imagine 250million will take as long if not longer.
So I think the result of alot of these people looking at CRK will be....we are not interested in making an offer now...but show us that Cosmo operates profitably and does what you say it will...and we will buy you in 3-6 months from now.
I think ultimately CRK wants and needs to be sold.
I agree that managment (bharti and imeediate managment) took on more then they could handle with CRK because of the size of the land package. They thought they could ramp it up too quickly and made a bunch of mistkaes that cost them dearly.
I bought back into CRK at .52 because I do think managment knows what they are doing and can turn it around. I thought .52 was a good price and in 1-2 years could yield at 3-4 time return depending on how succesfull they where. We willk know shortly. I imagine they will do a monthly production update at the end of January if they are successfull in ramping up cosmo to show investors that are looking closely at acquiring
GLTA