RE:RE:Response from Spectral wrt to Dialco I have to agree that the iDialco transaction is most likely material, and worthy of more complete disclosure, for a variety of reasons.
The fact that most shareholders that I talk to, and here on SH, think it is, or must be material - is almost reason enough. Materiality, in my mind, is anything that is likely to impact investors judgement regarding the value of their investment (and influence their future actions such as buying/selling or holdiing).
Judging it's materiality by talking to legal counsell and or by an after the fact market reaction to (incomplete disclosure) is ludicrous at best. There has been little to no disclosure about Dialco and its future revenue/EBITDA potential (unlike for PMX) thusfar - other than to say it has the potential to be a "game-changing technology". If investors don't know what they have, and don't understand it's potential, how can you judge their lack of reaction to "news" on something that they do not understand in the first place, as support for the fact that any changes made, are immaterial? Dialco was obviously material enough to occupy 1/2 of the investor presentation slides, for the past several years.
If the potential market size for the US was X (with Spectral's estimate of pentetraion), and now it is X-Y, we need to understand what it WAS (ie X) and what is is NOW (post transcation). The lack of SP reaction is more a reflection of the fact that investors don't understand X, let alone the impact of change (X-Y). Because Paradigm assigns no value to iDialco, and Spectral provides no forward guidance on revenues, it may mean that investors haven't assigned a value as well. Is X-Y> zero? If so, what is that number? As AP stated , it's likely to be material in relation to the current MC, unless they were being untruthful about SAMI/DIMI being a "game-changing" technology where previous technologies fetched in excess of $ 2B (see Tablo and NXStage)
Time to shine some more light on the part of the puzzle that has been most concealed by shadows.
Not only what has been been given up or acquired, but what is the impact on Spectral's share of the potential market opportunity, a quantification of same, and the options being explored (with infomed) to monetize the asset in the future. Most other public companies would do that as a minimum.
MM