Here is whats going on1) Why is the price dropping?
- It is not manipulation by Pivot. It must be an institutional investor or 2 (probably a fund) that is dumping their position along with some scared retail investors after the offer retracted. Once this big seller (or sellers) is fully dumped, price should bottom and reverse.
2) Why haven’t they released their 2015 4th quarter and year end financials?
- This is not a bad sign, it is a good one. I think they had a great 4th quarter and didn’t want to release the financials as it would cause the price to rise making it less of a premium on the offer. They will release the financials in April so it is possible that they could try to rush another offer before then.
3) Will there even be another offer?
- Yes, I believe so for mainly 2 reasons; mgmt is quiet and they still want the company for themselves. It has only been 2 weeks but they have been very quiet which makes me believe something else is in the works. They still want the company for themselves and they will get it in the end. However, the major questions for shareholders are when and for what price.
4) What should retail shareholders do?
- I suggest holding/buying more as there will be a floor in the price once the main seller(s) shares get eaten up and the price will reverse upwards. Current yield is 7.5% so you are getting 7.5% (or 10% at current prices starting in the 2nd quarter of 2016) to hold this growth stock that people are claiming is worth more than $1.
Bottom line
I think it would be good to hold/buy more at these depressed prices while the institutions are finishing up their dumping. There should be another offer and it could come this month (before they release 2015 financials) or at some later point down the road. If it is later down the road, you are getting 7.5% (soon to be 10%) to hold this stock for “growth” and wait for another offer which is believe is inevitable with mgmts thirst for having Pivot to themselves.