MagIndustries Corp MAAFF

RE: RE: RE: what is going on with management

[zeekay]

Logically another $.25 offer would be the easiest way to get to 90%. I agree with "that is what should be done", I just don't think that is how it will play out. They are ready to dilute the float to 84% owned by Evergreen because of the financing. Why do any deal before December 28th financing turns to shares? They are getting shares at a 20% discount to the 5 day MA, and this is cheaper than any offer to current shareholders. They could save themselves millions by waiting a few extra months.(About) 8% of float is about 37 million shares. Assume the SP will be $.20 at the end of December and they get those 37 million shares at $.16 (20% discount to lend to yourselves!). They save $.09 per share vs. a $.25 offer or about $3.3 million. A side benefit for them is that is would devalue the SP by adding shares, thus leading to a cheaper offer to the rest of the holdouts. Fair would be to offer $.25 again (only fair as far as shareholder to shareholder, not to be misconstrued as a fair offer overall). The Chinese generally do not play fair and I only have to go as far as the "self-financing" to prove my point.Sorry for the rant, I had an extra 20 minutes before I had to move the sprinklers!