RE:SHAW FAMILY PREPARING A TAKEOVER BID FOR CORUSNext quarter(s) be determining factor of Corus outcome going forward:
- biggest factor is revenue in next qtr(s). Does revenue exceed expenses e.g., ability to pay off debt. Unfortunately, revenue has becoming less and less each year or quarter. What is the reasoning for continual fall off in revenue? Are advertisers or revenue streams leaving because not wanting to do business with company on verge of collaspe e.g., this may be a huge part?
- new CEO can he rightsight the ship with all the latest cutting measures e.g., elimination of all the jobs, especially the last month. Does elimiinating jobs override increase in revenue?
- Debt covenants, does the bank eventually step in if segment profit debt continually gets worse. Basically leaving a worthless company.
- Corus may survive but a massive infusion of captial may be required at share dilution e.g, equating to pennies on the dollar for shareholders.
- Corus may continue to trade at these share prices for the next year. Company may improve showing a turnaround, elsewise becomes bankrupt if no signs of turnaround.
- Hence, huge share price appreciation vs. high risk of essentially a defunct company.