RE:RE:RE:RE:pinnapple do you know craigloop?"do not like that we've heard nothing on CO/TN."
The insiders just put significantly more money into their share holdings than they took out through the options exercise. The insiders are in the stock in a bigger way with their money and have not been net sellers. Sleep Management was willing to accept 42 million shares as payment just one month ago at a higher price becoming a sizable holder of the company. They accepted the stock as a significant portion of the deal. The $67 million bought deal was at $1.50. Analyst tragets are substantially higher. 18 days ago, in a news release, they expected the LOI pipeline to close "very soon". Basic terms have already been agreed to given the LOIs.
There have been many LOIs in process and completing all of them in a way that best uses their limited cash to maximize shareholder value is a bit of a puzzle. They said they wanted to get the $100 million Sleep Management deal completed first since that was the big and transformative acquisition. That deal concluded just one month ago. Integrating that one before finalizing the next may take a few weeks. With that deal completed approaching and negotiating final terms with the remaining LOI parties takes a bit of time and coming to exact terms involves negotiation. The key appears to be that there are more LOI opportunities than PHM needs to get to its run-rate goal for this year. PHM can make them compete and chose the best ones or move on to a new one. PHM doesn't need any one or two of them to get to its goal. The big deal with Sleep Management is in place and there other deals are significantly smaller. PHM wants virtually all-cash deals now that Sleep Management is in place to limit further dilution. It is less dependent upon the value of the stock now to conclude deals. The company has also said that it can add $80 million in debt to its current cash position to conclude additional deals given its growing EBITDA. The recent options exercise added some additional funds. The company has the resources in place to get to its year-end target and the ability to choose its next acquisition target among a number of alternatives. PHM appears in the cat bird seat.