RE:RE:RE:RE:RE:NEWS: AgJunction Announces Facilities Consolidation...KerBer wrote:
And if anyone thinks we would get a 70% + premium on the current share price, they need to give their head a shake. We would be lucky to get an offer of .90 cents a share, if even, there are just too many questions a buyer would need answers to before they would consider a bid.
Presumably if there is real interest the potential buyer would be able to get more details on the sales contracts and opportunities. Management has not been forth coming with this information to public investors for whatever reasons (competition?). But under a limited exposure situation they may be able to illustrate value to an acquirer (under strict NDAs and perhaps a non-binding LOI or similar commitment). Consider that the current share price considers the on-going costs of running as an independent company when looking at earnings. An acquirer would factor synergies into the equation and ideally results in higher EPS potential than the company can generate on its own. Management would know this and it would have to be reflected in any bid to be considered. KerBer wrote: Besides, why would management put themselves out of a job, nice pay and lots of free shares and it appears no pressure from the larger shareholders for change.
This is why an independent board is crucial. Management can continue to milk the company and provide lack luster results as long as the board allows them to do so. The board needs to step up their game. Management will be rewarded according to their severance agreements and they'll also be able to cash out with their options. The path should be clear: put the company up for the sale and let's end this limping along. If $0.90 is what it takes, put that out there and allow a 60-day alternate offer solicitation period.