RE:RE:RE:RE:RE:RE:RE:RE:Vote AGAINST the Privatization Defiance2050 wrote: I sold back in November from personal preference of not holding after buyout offers. Those are my own thoughts as someone who was a shareholder through these events.
On potential buyouts I have had slight upside holding, sold before a slightly higher offer, and times where the deal did not occur with the price dropping.
These press releases can be influential however management is acting far from horrible or against regulations. They did not purchase at a massive discount and they sure could have forced this into a rush sale. Hypothetically management could have made a decision pre-bicycle boom for less than half of the buyout price. That would be a bad faith offer.
McRambus wrote:
Defiance2050 wrote: I averaged down and excluding my March purchase had an ACB around $10. Decided to listen to what analysts are saying about potentials for SP to drop. Sold at 15. I wasnt convinced about how drastic SP increasing because of bike sales. Juvenille on the other hand has not done as well with store closures. E-commerce growth may not continue at the same rate.
Tariffs, big customer bankruptcy, higher costs on foreign exchange. Cost restrictions from suppliers. Who knows what issues that Dorel has 0% control over (other than moving production).
Uncertainty brought SP from 40 to 1.30 and from 1.3 to 15 in under a year.
Best of luck on the vote but I do not think anyone comes in to purchase the whole company at a higher price. Voting family did not want a partial sale.
So you let them scare you out of your shares. Management now using press releases loaded with fear to get minority shareholders to tender while manegemnt is KEEPING their shares and INCREASING their stake in the company. This is a special kind of low.
If business is so uncertain why are they INCREASING their stake and desperate to get this deal rammed right through at the CHEAPEST price possible?? Actions speak louder than words. Business is actually booming and will continue to boom as people shift lifestyles. Cerberus has $40 BILLION assets under management enough means to pay a fair price. Vote AGAINST this proposal.
Have no idea why you're an apologist for management. How do you 'force' a sale? The price was $6 in February, and artifically low from the Covid crash under $2 and then recovered very quickly (like many stocks) to above $7.00. There was no buyer at the time. July 31 they receieved offer for $12.50 with the stock at $10.55, an offer with not much of a premium to start with.
While the board reviewed the offer, price moved higher....on it's own. There was no rumors or press release of any firm offer. While the review and due dilligence was taking place the stock was ABOVE their $12.50 offer, again with no rumors in the market. Then they decide to rush a valuation report while the Buyer was doing due dilligence and had to up the offer to $14.00 on October 16th...while the stock was $15.45 that day again with no rumours in the market. Does this make sense to you?
On October 31st Cerberus decided to up the offer by 50 cents to $14.50....when they 'ended discussions' on October 18th. One PROBLEM...the stock was $15.93 on October 31, with no rumors in the market. That is just 50 cents above TD rock bottom price in valuation report, a laughable price. Embarrasing really. They made a $14.50 offer with the stock trading at $15.93. I have over 25 years in the markets I have never seen a buyout at a discount to market price.
It's all in the circular for shareholders to review. I'm not a lawyer so unsure of the legal aspect but it is feels unethical. Trying to play fear game, imply the price could crash if holders don't tender while they keep their shares with management no intenion of selling and getting a bigger stake in the company is suspect. The price was moving upwards steadily as the market sensed the company's changing fortunes. It's that simple.
The Buyer has absolutely the means to pay a FAIR price, not just to management but all other shareholders too. Letko Brosseau and Brandes LP profesional investors and 20% of shares are telling you the offer is woefully inadequate and will not sell, what makes you think you are smarter than them? Vote AGAINST this proposal.