RE:Interesting turn of events for Graph....Thats a very shitty and shady move by management imo.
mrmomo wrote: I really didn't expect this news of the company spining off some divisions & splitting up into three seperate entities. In truth, i expected the possibility of a share consolidation way more than what has occrred here. So investors & s/h alike are probably asking themselves whether this is good or bad for the company & for their investment going forward. Imo, this still remains to be seen as we don't know the intricate details of this transaction nd how it will effect our investment here. One clear sign though, was the stock price NOT reacting towards the upside prior to this annoucement, which has left me a bit confused & bothered. This missing reaction of course, could be the result of either two things, either the company kept this VERY secretative & under wraps until annoucement OR the transaction isn't really that great........neither bad or good, neutral in other words. I guess we will see how the market reacts to this unexpected news today.
For comparisons, in past situation with other company's who've attempted this type of company transition, for some it turned out great & for others the end result wasn't quite what the company & its holders expected. I guess what we can deduce from this is that each situation is unique and it all depends on the details, how mgmt carries it out & really how successfull the business is from that point. So in the end, i think s/h should take this with a grain of salt, as we will still be owners in all three segements of the business and nothing has really changed when it comes to our core investment here.
I surmise the next question would be WHY is the company doing this? My guess would be since the company is cash hungry & is very sensitve to liquidity issues with the fact that it has already issued quite a bit of cheap paper, 525M large fd at last count, it was either this or a share consolidation. I think this reason was probably the main driving factor, with possibly some other internal mgmt issue along with it. Here again, i guess we will see in the coming days, weeks & months how this is fleshed out......
Good luck & God speed