RE:Early daysExcellent post Londoner.
I can only add the following comments:
- IMHO $1.95 falls short of representing current value of the company including the value of its high quality GSA reserves, investment in the GSA hub and substantial tax loss recovery pool. There is no premium takeover value in this price despite what we have been told.
- "Independent analysis" can be bought. Regardless, analyst projections of company stock value tend to go up and down with the prevailing stock price. This is why analysts are most often behind the wave rather than in front and also why the vast majority of fund managers are unable to outperform their benchmark indexes over time.
- Several on the Board of Directors are very motivated for personal reasons to liquidate their shareholdings and stock options in Ithaca this year and move on. It was therefore critical for them to find a buyer to achieve this.
- In 40 years of investing I don't think I have ever seen a BOD that is more self-serving than this one. Case in point: granting themselves 12M stock options at $.55 as a performance bonus when the company was on the verge of bankruptcy.
- I don't blame Delek for making the offer they did. It was a strategically brilliant, well crafted and well timed move. It has forced the hand of the BOD and therefore a largely fragmented group of shareholders at the best possible time. As the line from the Godfather I: "It's a smart move. Tesio was always smarter."
- Notwithstanding the above, the $1.95 offer is the "fair" market price if no other buyers surface to provide a better offer.
Should a competitive buyer not surface it is ultimately up to the shareholders to vote for or against this offer. I believe that the offer will be accepted, but there is a chance that it might be amended higher either by a competitive buyer or through institutional shareholder pressure.
With this in mind, as soon as the offer was announced I sold 80% of my position but will retain the remaining 20% to participate in an increased offer should one arise.
To GG, Kensho, AB, Crow and Ferret it has been fun participating and kibitzing with each of you on this board and I look forward to connecting with you on future adventures.