Ho-Mee, I'm not calling Russell an idiot.
And I'm sure that no one believed that INSP's stock would be crushed in the manner that it has.
They are making a business decision, that if all goes as planned, will provide a long-term relationship with what is considered a "blue-chip" wireless play. I have no problem with that on a fundamental basis as I think it is smart.
All that I have stated is that timing was wrong given the traditional lethargy we see in the overall market during August. Furthermore, there is the fact that all the positive news that INSP had to relate about their better than expected earnings was suddenly nullified by their co-announcement that they were acquiring GNET, a relatively unknown company, sending the stock plunging through its April lows and major support level.
Russell and Jain had been discussing a merger for several years now and it was only IN JUNE, when Sarin put it on the fast track at the beginning of July, that this was put into concrete.
All that I have asked is "why the hurry"? If I can't ask those questions then we're limiting the discussion to nothing but hype and cheerleading.
Anyway, it's a moot point now since the deal is done and the penalty far too expensive to pay to delay or nix it.
But you can ask yourself whether this deal, as structured, was the kind of deal that YOU would enter into when your company is obviously showing better results than the company that wants to acquire you.
I just think some folks miscalculated the strategy and the repercussions, or were deceived by their perceptions of the street's willingness to accept this deal at THIS particular moment.
Regards,
Ron |
