Commercial Solutions Inc CSOSF

Why?

[DTM5]

Anyone have any idea as to why?

[Flipper12]

I doubt we ever find out why but one thing for sure its worth more than the 70 cents you can buy it for today.

[Gonzo2]

What I unofficially heard from somone with some ties to the company, is that the offer was considered too rich for IDG.  Hinted that there may be another suitor in the stands.  Cannot corroborate this.  We will have to wait and see.

[DTM5]

Well they had a LOI in place and said that the acquisition was 'subject to certain terms and conditions'. I suppose CSA could not meet those terms.   One can only assume (in the absense of other information) that the deal fell apart in due diligence.  That is,  IDG didn't like what they saw when they started looking under the hood. If no clarification is provided, one

[Gonzo2]

I believe that you are right DTM%5.  I question the leadership at CSA, in light of their slowness to recognize the downturn and to protect the company when there was a downturn.  This cost them dearly as some of the leaders of the companies they had acquired, left.  Not being able to adapt and downsize/cut costs quickly has resulted in today's company.  Can it improve? 

[DTM5]

It is a good acquisition target in a growth region (Western Canadian Energy sector).   You are right they moved way to slowly over the past few years to turn thigs around.  I sense any acquirer would have a clean up job on thier hands - On over 100m of sales they barely have net earnings and EBITDA is also modest.    This company should have net earnings of 5-7% (5 - 7 million)

[Ciao]

Last Q results were weak and it broke a positive trend.  Did the business look so bad that IDG did not think CSA management or themselves could turn it around?  What conditions were in the LOI outlining whether current CSA management would stay in place or not? This stock was over $7 in 2006 / 2007 and for a brief time over $8, tumbled during the financial crisis and never got back up

[DTM5]

Its been a turnaround play for about 5 years now.   This company is getting ridiculous.   Yet another black mark on management.   I wonder what the employee morale is like?

[Gonzo2]

Could it have been that management was not palatable to IDG?  Maybe they wanted to be on the board of directors or management for IDG, which was a no go.  It is sad that management has not been able to turn things around.  What kind of debt does CSA have?  That could be severely impacting this company as the 100 million+ dollars of sales at a return of 5 to 7% should