Avante must be sold, & AnitaGet does not understand muchAnitaGet wrote: Based on information we had up to about a month ago, I'd agree with you that $1.3 is a fantastic buying opportunity. With the recent #'s I think the risk level went up.
They had a ~$3M injection from a private equity firm. What was the money used for? Did they need it for operating? Are they going to use it for M&A? Did it pay off debt? Is the firm a potential buyer and this is their first entrance in?
I'm not suggesting the sky is falling and they are clearly NOT going out of business, but there are now some more unknowns, so the risk factor went up.
I know the CEO from a previous company he ran and my confidence in his abilities have not waned. Recall that prior to joining XX, he took a significant shareholder position, so when he talks about shareholder value, he's also talking about his portfolio.
Anita.
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AnitaGet does not know what she/he is talking about. What $3m injection from private equity? A new shareholder buying shares from another shareholder is not an equity injection. You should fully discount AnitaGet's expression of confidence in the Avante CEO. Listen to the share price and it will tell you what you need to know. If Avante was not for sale right now, the share price would be below $1.