RE: RE: RE: RE: RE: RE: Article: beenthere
your theory make no sense in my opinion.
If PMI buys out the company for $1.00 or whatever, they bought the farm, its no longer a public company at that stage!.based on your theory they would have paid much more for the company than the book value, they cant make money like that, and PMI shareholders would be unhappy with such a deal.
They can make money by SELLING the shares at much higher value than they paid for them. If they buy out the company effectively taking it off the market they would have to wait for many years to get the book value of the company up to a value that they could get if they SELL the shares at a speculation related value rather than the book value.
I do not understand your logic unless you are trying to worry others into selling. What possible point is there for PMI to hold down the share price, to buy out MDG cheap to take it off the market? there would be no MDG shares to sell after that...whats the rest of your theory?
From my point of view PMI is compensating their image by helping out with MDG (they are footing bills you know, by purchasing shares), by helping to change the view of a tobacco company who is playing a part in improving the world health instead of causing a deterioration in world health using tobacco.
If MDG had to get the 40% from the market, to fund all the work it takes to get to a commercial product, I dare say the share price would not be at 55 cents today. Do you believe that Darpa would have hired a Canadian company to do what has just been completed? dream on man. PMI's backing is for sure a big consideration in this overall operation and in the positive share price given this outfit is not making any money yet.
Even if they did what you say and bought us out for $1.00, its still a heck of a return over 5 years and is about equivalent to 15% compounded return, where can you find that today?, you should put your money there if you are so worried about what PMI has planned.
KD