Post by
SamRothstein on Feb 23, 2020 12:31pm
RichardsonGMP buyout
GMP reports earnings this Friday and hoping they announce favourable RichardsonGMP buyout deal. They scheduled call before market opens and slightly earlier than they normally release q4 and I am interpreting that they have favorable news that they want to release ASAP. It is in all the various stakeholder's interest to do this deal and they have all stated numerous times in various venues and in earnings reports that this buyout is the plan. And they brought in Kish Kapur specifically to help grow GMP through acquisitions. I think they do the deal the only question is what price are they going to issue GMP shares at to buy rest of Richardson. The lower the share price the more shares and/or cash Richardson family and RichardsonGMP advisors/managers get Dow their shares. Richardson owns 24% of GMP, and GMP insiders own about 7%, and everyone wants to get this deal done so I am hoping the price is fair to rest of GMP shareholders. I first got into this stock in late nov 2019 so I could snag the $0.30 div on dec.16. That was a 15% yield at $1.99. Have bought more from late dec to now in the $1.80 to $1.90 range. Hoping for pop (shares could easily pop to $2.25 on decent deal announcement) and my downside is cushioned by the dividend I snagged.