BUYOUTS:
For normal "people" reasons I would not expect many buyouts to take place at the top of the cycle, because at that time everybody is fealing great, and expects prosperity to continue forever....
In contrast, at the bottom of the cycle it is reverse scenario. It has already been a hard grind to that point, and either the people are getting worn out, or the cash is in real risk of running out, and not too far away at that!
Or both!
I think MTSN's situation is in the OR BOTH category, and
I really think that that is next significant event we are going to see. Product news, fine. The odd new customer, fine. But those aren't really the issues. The issues are
about survival...
MTSN might be able to go back into the capital markets one more time, and probably would do so via a convert with a pretty low conversion price. But the Balance Sheet doesn't look too hot. The forthcoming dilution would quickly get factored into the stock price.
In the circumstances I still think MTSN is a $3 to $5/6 play, pending establishment of what the future holds.
Namaste!
Jim |
