Actually, it is worth $112 million. That is what the market says its worth, and to borrow a phrase politicians use to describe election results, "that is the only poll that counts." The Proxy stated that control has passed to KPN. You can bet that they have entered into this transaction for a definite purpose; their ultimate purpose is always the further growth and enrichment of KPN. You'll note that KPN's Marten Pieters is joining the Company. I like Mr. Pieters' credentials:
Mr. Pieters. Mr. Pieters is an Executive Vice President of
Koninklijke KPN N.V., the parent entity that owns 100% of the capital of KPN ("KPN Parent"). He is responsible for KPN Parent's international activities in Europe and the United States, and currently holds seats on the boards of various incumbent operators including Eircom in Ireland and SPT in the Czech Republic and also of new telco's such as Pantel in Hungary. In 1995, he was appointed Vice President of International Operations responsible for KPN Parent's affiliated companies, including Eircom, SPT and Pannon GSM. Prior to that, he held positions first as Commercial Director and later as Managing Director of a telcom district. He joined KPN Parent in 1989 as Secretary to the Board of Management, after spending more than ten years working in the food industry. During this period, he was employed as Financial Director at an international company for five years (1984 to 1988). Marten Pieters is a graduate in Dutch law and completed a postgraduate course in Economics in 1997.
See, Pieters is a telco man, already an insider of Hungary's Pantel. My business and investing experience tells me that Pieters is now calling the shots and, with KPN yielding the investment wallet, if Cohen and Genova fail to perform, they will be out. KPN can and will vote them out.
KPN is a very good, very tough company. It now calls the shots here. It has increased value for its shareholders by tens of billions of dollars in a few scant years. Just the past few months have exhibited spectacular performance.
In a fluid situation like this, if I wish to make money (and I do, I do), I must try to think like Mr. Market. And he is an irrational valuer of stocks, subject to high hopes, manias, and dreams. This company, via its association with KPN, supplies all of the factors necessary to attract those who believe in high hopes, manias, and dreams. The best advice I was ever given was "don't fight the tape", meaning my personal beliefs are irrelevant, my fundamental analytics a mere curiosity, in the face of a market that does not think like me.
My study of the current market mindset tells me the market will bet KPN can do here what it has done elsewhere; all other factors, Cohen, Genova, $1.38 purchase price, etc. are not things the market is now looking at with regard to this equity. If it did, we'd be trading a t $1.38, as you'd like. And the fact is we are quite a bit higher.
I hope this has helped explain how I view things, at least. |
