CorruptedLushDr wrote: PREFACE: in no way, shape, or form am I about to suggest that WELL will one day ever be anywhere near Standard Oil
It is worth considering that JD Rockefeller was very fond of offering shares of Standard Oil rather than cash to those he acquired. Often within a market that was far more wild, violent, volatile, fractured, and unpredictable than anything we are witnessing today.
At any rate, of those whose businesses were acquired, some took the cash, some sold their shares almost immediately -either way, these people walked away with a tidy profit.
However, those who took the shares and held because they saw a longer term opportunity, in many cases, became the progenitors of some of the wealthiest families of the 20th century - legacies that continue on to this day.
Long Term vs. Short Term Time Horizons
monty613 wrote: jdsd0517 wrote: That is absolutely NOT far-fetched, not in the slightest.
Imagine you are a shareholder of MyHealth. The closing amount you thought was worth $176m is now worth $112m, so you aren't a big fan of the stock.
If WELL satisfies its $10 million payment in shares, you aren't going to be a big fan of getting even more magic beans. It doesn't really matter how well MyHealth is doing if the value is all tied up inside WELL stock.
The same thing has happened at another company that the WELL CEO is involved with, Hire Technologies. That beauty has gone from about 80 cents to roughly a dime, largely because the people that got HIRE stock when they sold their company are dumping it.
So is this an absolute given? Nope. But is it "far fetched speculation", absolutely NOT
neither scenario is an absolute given because we have no idea what MyHealth owners did with their shares. they are not WELL insiders.
I stand by my comment that it's far fetched to thing they would liquidate the proceeds of the prom note payment if they are sitting on that many shares already. common sense would tell anyone that if management opted to take cash + shares for the sale of their company, instead of cash outright, they almost certainly would not turn around and liquidate all of their shares at these price levels. moreover, in less than 1 year since closing with nothing materially weakening at the company (only strengthening). these are not Stockhouse posters - they clearly have a longer term view on the combined WELL entity and an abysmal share price performance over the last year does not nullify the "true" equity value which could be achieved in the multitude of privitization/takeover/spin-off scenarios which exist here.
the sale of MyHealth was a competitive bid and management could have taken an all-cash offer. they didn't for a reason.