The acquirer`s stock usually drops
posted on
Sep 08, 2006 07:49AM
I know most here are enamored with the idea of buying another company but imo that may be why we see the selling holding down our pps. People figure they can buy back cheaper. Let`s examine the state of any co that we might acquire. A co with good cashflow and strong revenues-don`t think so. More likely a small co with a good prospect for future revs but no cash. So we will be trading stock and spending some amount of current dollars for a potential future revenue stream. Sounds like dilution and delayed gratification to me. Cos with no cash and revenue potential are not hot these days. I own plenty of them, lol-not. Remember our pps rise was based on deals, divies and cash.