Andy;
In answer to your questions:
Was Molex tricked into taking a 25% stake in this Company?
Maybe. MOLX is a fairly low-tech company. In any event, it is VITAL to remember that MOLX paid only $2,5 cash for their 25% stake. That means they valued the company at only $10 million. (BTW, that works out to 27 cents per share). A valuation far lower (by orders of magnitude) that what LUMM is currently trading at.
Why would they be involved with such a low quality company?
Presumably, the same as you, to make some money on their investment, which they obviously have.
Surely they have the resources to do some thorough dd.
Not as much as you might think, for what is for MOLX a tiny investment.
Why does csco have someone involved with such a horrible company? They must not have access to your "friends in the fiber world."
Yes, CSCO does have access to my friends, HOWEVER, CSCO DOES NOT "have someone involved" with LUMM. To be precise, someone who WORKS at CSCO is involved with LUMM, that is a VERY DIFFERENT thing than what you expressed. And, often, smart technical people without any stock market savvy often get involved with scummy companies, companies eager to have people think exactly what you did, that their presence somehow means the employer is blessing the company, when that is most often not the case.
Buyer Beware! |
