RE:RE:RE:RE:RE:RE:More downward pressureWhat do you mean by "massive loss?" Do you know the cost base of MyHealth vendors? They might be making healthy profits selling WELL at $3.50. Why assume that the cash offers were near the WELL offer? Maybe they were much lower?
Respectfully, your assessment of investor behaviour is badly coloured by your love of this stock. My scenarios are exactly what people do when they have an outcome. People buy stock because they think it is going up, but they sell for any number of reasons. If they are, then that puts pressure on the stock price. My most likely scenario might not be yours, that's fair enough.
Also, do you know if MyHealth had shareholders in venture or PE funds? Did you know that the LP agreements are usually structured so that when there is an outcome for a portfolio company, that the funds are distributed in cash, not in-kind? Do you know that means those funds would HAVE to sell shares? If they are, then that puts pressure on the stock price. My most likely scenario might not be yours, that's fair enough.
The point is that NO ONE knows, there are too many details missing. So you CAN'T take the position that NO ONE knows and then take the position that the OP's assertion is far-fetched. That's why I called your post poorly thought out. If you gonna jump on someone like the OP, make sure you know what you are talking about.
monty613 wrote: jdsd0517 wrote:
Most likely scenario is that the selling shareholders are continuing to take money off the table and this is (and has been) putting pressure on WELL stock.
The OP's assertion is only far fetched if you have a WELL fetish. To a reasonable business person, it makes perfect sense.
This board would be so much better if it had a little more rationality, and a little less "mean girls say that all the cool kids in the cafeteria love WELL stock no matter the price" vibe.
rationality, preceded by your
assertion that the "most likely scenario" is that MyHealth vendors are selling all of their stock and it is putting pressure on the share price? and my position is not well thought out, but you think they are selling $94MM in stock received at a *massive* loss to buy cottages and cars? even after receiving the windfall of cash consideration with the buyout?
I'm ignoring all of your scenarios because they just simply don't overcome the magnitude of the loss vendors would take by selling their stock. I stated that nobody here, including myself, knows how many shares the vendor has still. they are not WELL insiders. but my personal opinion stands that no vendor dabbling in this level of M&A takes their share consideration at $9.80 and blows it out in a firesale in less than 1 year from closing. even with this level of poor share price performance we have seen.
the vendors still work at WELL and run MyHealth. if they were that bearish on the company they would have taken their money and ran with a cash sale which was an option. they agreed to WELL's deal so they could stay on, grow the company and participate in the equity upside. they need their shares to participate in that.