Hi Brother,
Well, sorry about your morning call with the company. However, if you are sure they turned down an unsolicited approach, perhaps that is useful information to you. You may not be able to trade on it, but there is no one that can force you to sell if you "know" something. Keeping what you already own does not constitute insider trading.
Insofar as the Company being receptive to outside interest: Perhaps they weren't so before, but its for sure they are now. Its very difficult to value what is there, but the management is paper thin, and to date, not very successful at that. I certainly hope that the Board authorizes a search for "extraordinary transactions that can enhance shareholder value." After all, they haven't done that in the ordinary course of business.
By the way, it is interesting to note that company spokesman consistently talk about growing the business at the expense of profits in these calls...I don't exactly understand this, after all, isn't the purpose of being in business to generate profits? Perhaps one could say they are trying to build market share, but it certainly appears that their efforts haven't been successful to date, profit minimizations aside. It seems that I remember the rest of the major networking stocks turning in solid performances even in periods of "uncertainty." What is unusual about this situation, that causes them not to participate on the upside, but to be fully in synch on the downside? (Rhetorical questions allowed, yes?) |
