Ok Brian, I obviously struck a nerve there.... excuse me, I didn't mean to intrude on your private SI kingdom. So then would I be right in assuming that you think that it is QWST's best (long-term) interest to stay away from USW and Frontier? Or do you think they should do the deal...
Why, IYO, did the news of QWST's offer bring stock down? Do you think it deserved to get hit? At what price is this company fairly valued and how do you arrive at this number?
Do you think that their .17 cash/per share ($119 million total) is enough to sustain capex requirements at current growth levels? ... What are you anticipating their cash needs to be? How much excess capacity do they have now and what do you expect them to need 3 years from now? How do you expect them to fund this money? What is there cost of borrowing now? What would it be if they get USW? Do the long-term strategic benefits of USW outweigh the slower short-term growth rate?
Also, just because the stock goes up doesn't always mean the analysis was correct (see EBAY). Did I suggest that QWST is a bad investment at any point? Were my comments addressed to the "long-termers?" or to the easily discouraged...? Was the point of my post to show precisely that we, as investors, do not know as much as management and that they should be given the benefit of the doubt?
The thing that really irked me is that some (NOT all) investors seem to bail when high-growth "concept" companies are forced deal with real world issues (and then when the stock goes down, others, including SOME people here on this thread, jump to the conclusion that if the stock goes down... the deal is bad). The problem is that real world issues require real world valuations, something manyh of today's investors try hard not think about. Many investors in QWST have obviously shown their disapproval for the proposed deal... (hence the stock's collapse over the past two weeks) but IMO, they don't fully realize the value (leverage) that a stable, generating company like USW brings to the table, strategic and otherwise. All they seem to see is that their pure-play will be tainted with the blood of a "untouchable".
-enam
PS <<Do your really believe it was the people on this thread that all by themselves caused the QWST stock price to rise.>>
Puh-leeeze... |
