dont sweat it. gnet has the model infospace will now use. at least a couple HUGE "positives" come out of this
I not sweating anything.. except selling out too cheaply.
IMO, GNET have been incredibly patient in permitting Russell and all of the GNET crew to build the foundation of this company's business to the point where the street will have no option but to pay attention to the increasing revenues and earnings of this company.
Sarin and Jain of INSP have said it themselves. GNET is at the point where INSP was 12 months ago just before the street began rewarding their wireless business model. That means they recognize the tremendous value that GNET provides them with their broadband services and transaction based payment system. They also recognize that broadband will likely find a greater market audience than wireless (at this time and moment) due to infrastructure constraints with wireless devices (ever try to download data on a cell phone?).
My point is, and continues to be, that GNET has little reason to permit itself to enter into a pooling of interests at a price that closely resembles our value of two years ago when PA first invested in the company. There are plenty of options available, such as a strategic partnership with INSP, that can ultimately lead to a fair and equitable merger that makes eveyone happy.
Obviously, the street felt INSP was so overvalued, or GNET so misunderstood, that they believe this is a bad deal. Well, if INSP and GNET are unable to convince investors that the combination of the two companies doubles or trebles their market penetration in both wireless and broadband, then such a strategic partnership may be just the ticket that will alleviate the anxiety of all parties involved until such a time that the street DOES finally understand GNET's business model.
So yes, even if the merger is postponed, I think GNET is in the enviable position that all of this PR will only be positive for it. However, INSP's stock price must be supported by the street or it will remain an albatross around GNET's neck, depressing the stock near these levels.
I guess my final decision on how to vote our shares will depend on what the stock price of INSP is at that time. Either way, mergerd or merely engaged in a strategic alliance, 6 months from now, I believe we'll be seeing more attention paid to both of our companies, but especially to GNET with its low market cap and small quantity of shares outstanding.
In sum, I love the relationship.. I think INSP is getting GNET at a bargain if priced at $87/share, and certainly an outright STEAL at any price lower than that.
Maybe we just need a few more quarters for the street to truly understand what GNET's potential is. It is certainly as positive as INSP is, IMO.
But what do I know? I'm just a schmuck investor who has no right to second guess management or the BODs of GNET. But what I do know is that INSP's management is giving us the best PR we've had in years.
Regards,
Ron |
