Optimistically Holding
We already know they are in care and maintenance with some cost involved so no issue there, it’s part of the process. We know they are not in production; if they were this stock wouldn’t be down to .035 Yes there is a lawsuit claim against Itafos which makes sense. Lawsuits happen all the time and they may be warranted or not.
Non-binding offers having been received from those in the business, which is a positive fact. Whether they secure their purchase or not…time will tell. But its like having your house for sale, no viewings means no interest, at least MBAC is getting viewings so there is still hope. The parties interested already have experience in the world of fertilizer and agriculture, which is another plus. Fertilizer is important to everyone as it boosts our crops substantially which our livestock thrive on.
Things take time…an investment fund with experience in the fertilizer industry has submitted an offer…another plus. They are looking at all the financials, assets, lawsuits, etc… who wouldn’t. You don’t buy a house without checking out the roof, windows, furnace, neighborhood and your financials.
Looking at the stockholders we saw major investors jump into this low priced stock and hold. That tells us something. Big investors aren’t going to stick around if they didn’t feel that a resolution was brewing.
The potential auction of the Itafos plants assets has been postponed until Sept 3, 2015 with the company working to stop as they have offers in the works that will eliminate the need for the auction and the need to liquefy assets. I view this as positive, and will continue to hold.