RE:RE:Trading below Net Cash with no value ascribed remaining bizHey Toronto Jay I know the feeling as I've had the occasional fit of rage about this. That being said however I think Fairfax well knows that they can get more money either through Avante purchasing an accretive adjunct company or selling Avante for a good price which should get us in total more than 1.71 a share. Suspect Fairfax is very well hooked-up and is helping make deals as we speak. They also know if they mess it up they could be on the wrong end of a class-action. I'm quite optimistic things will work out in our favour but we need a bit more patience, Luke, patience....
Torontojay wrote: It should be clear to everyone that Avante shareholders would have been much better off with the takeover offer. I believe shareholders would have received the equivalent of around $1.71/share. Take a look at where the share price is now and it's a BIG disappointment.
Suppose the company is correctly valued in the $1-$1.25 range, it is still much lower than the offer price. I agree that for new shareholders, the current price is pretty good but how the company will compound its earnings is not clear to me yet. They have a huge cash balance which is a plus but they need to spend it wisely.
Just to think for a sec, even if the share price doubles, it will be close to the offering that they had in front of them. It's too bad things turned out the way it did.