<<also, let's not forget the nokia factor. don't they have the option to purchase a large stake at the end of the month?? >>
Nope, not forgetting the NOK factor...thats one of the big reasons I think RBAK will survive and eventually prosper. For one, I think NOK did very thorough dd before purchasing, I think it was a 10%? stake ( somebody can correct me if I am wrong) and after doing their dd they bought their 10%? stake at I think around $2.75
This tells me NOK, after doing thorough homework, felt RBAK was worth at least $2.75....I mean, why would they spend the money on 10% of RBAK, unless they really liked what they saw? This was also done during a time when companies were cutting expenses, cutting spending and etc, etc....Meanwhile NOK, could have put that $$'s to use in many different ways, but they chose to put it in RBAK at $2.75 a share...with options ( I believe warrants) to buy more.....quite a vote of confidence from a very fine company if you ask me.....
As for NOK's option to purchase more RBAK, I am not 100% on the specifics, but they do have the option of purchasing more, by excersising warrants, but there are limitations as to when they can excersise...in other words, I don't think they can just buy at whatever price on whatever date they want. I believe they have a year, maybe 2, with actual time periods outlined as per when they can excersise warrants...such as 7 or 10 days prior to earnings announcement and other such parameters.....anyway, I hope NOK decides to take a larger stake...wouldnt hurt my feelings at all, and I think any announcement of NOK taking a larger stake in RBAK, could give the stock a nice boost as some big boys are going to feel if a company like NOK likes what they see and is taking a stake and for all intense purposes financially backing RBAK, then they will feel better buying the stock in some of their small cap or speculative funds.....Just my opinion, of course..... |
