RE: RE: RE: RE: RE: RE: RE: RE: any news Hi themangokid,
For the record, I am long on JAG. However, I disagree with you that there is a vacum of information, so we should attribute the free fall in priceto fear of the dealnot getting done. I think this is the result of:
1) The length of time it is taking management to seal the deal. The longer it takes, the less likely the deal will be done. I understand that these things take time to work out ... but the intitial offer was in November ... We're at 5 months into the process ... something should have come out by now.
2) CEO of the company resigned. Speculation is that there was infighting on the issue of selling the company.
3) Resutls were bad last quarter. The question is when will this company be turning a profit?
4) Finances. From what i've read, the company has debt coming due next year, only $75 million in the bank (and burned through approx $30 million in a quarter) and would need additional financing to fund their Brazil project.
I think the price is reflective of these concerns. Our best bet would be for a deal to take place ... but the drop in price has sort of handcuffed that option too (we won't get nearly as much as we would have just 3 months ago).