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Message: Re: Controlling interest
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Jun 08, 2010 12:10PM
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Jun 08, 2010 12:20PM

Dean,

The stock market doesn't evaluate a company the same way as a private investor. For the private investor it might make excellent sense to buy the company take the revenues, which incidentally are risky, and sell the company back to whomever wants to buy it. Again, the cost to the buyer will be far higher than $13 mil. The likelihood, nevertheless, is that he/she will make a handsome profit. On the other hand, the stock market looks a bit more long run. This means continous operations. At this point Edig's products are really, for all the reasons we all know, problematic. Even if DM does well and increases the settlement amounts to, say, double, Edig's take will amount to about, but no more than, $50 mil. Now this is about $.17 per share. This is, of course, the take from the present law suits. How much this will affect the pps? Your guess is as good as mine although you have provide some graphs about this issue. The silver lining of all these is that the management now will have some resources to go shopping in the market place for new products. If successful, then and only then we can anticipate some serious price appreciation. As far the new set of law suits is concerned, that is, the higher hagging fruits, now this a different ball game. Big firms have the financial stength to delay any trials significantly and DM has to think about what they want to do. This is my take and I hope i didn't offend anyone.

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Jun 08, 2010 01:55PM
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Jun 08, 2010 01:55PM
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Jun 08, 2010 02:24PM
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Jun 08, 2010 02:29PM
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Jun 08, 2010 03:02PM
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