What GS-T can teach you about GXI Strategic review of GS-T concluded today and the stock was off materially as no buyer was found at a value compelling to sharehodlers.
In the GXI situation, you have a company with a geat business, but the last few years have been flat, a management team that has not changed much, and shareholders who are motiivated to sell based on the tone of the conference call.
There is one clear buyer per the conf call, Eagle, who per the call seems to be in no rush. I predict no financial buyer will step up as the company is just too expensive based on past performance and the management team is the same, so what are you buying as a financial buyer - hope?
This leaves Eagle as the strategic, who will likely let this faid away as they know no one is going to offer more than them, and they will likely wait till a financial buyer puts in a bid and up it marginally.
Will it GXI get a $1/share from a financial buyer, I doubt it, probably closer to $0.65.