I have recently shorted VSNT, on the premise that they are in a very difficult financial situation, which will cause the common shareholder value to become essentially worthless. At this point my target price to cover is zero. I do not say this to taunt or mock today's shareholders (you guys have had it hard enough!), but rather to openly and honestly state my position and opinion.
Can anyone here please please try to talk me out of my position? If I am wrong, I'd like to know sooner rather than later, as I far prefer losing small to losing big. Particularly when shorting a low-priced stock such as Versant, the potential for very very large losses is always present. I really don't want to lose sleep (or money!) over being only "95% sure". I've managed to convince myself of VSNT's negatives (gosh, I sure don't envy management!), can you guys please tell me everything positive that there is about VSNT?
Here's the possible ways VSNT's shareholders can be saved, that I can think of:
* Significant (i.e., $5M-ish) new cash raised, through debt or equity.
* Significant (i.e., 50%+) increase in sales (and quickly!)
* Takeover -- would have to be for at least $28M for existing shareholders to break even
Comments? Ideas?
- Daniel |
