Exactly why it needs a merger partner. This stock has had a big run up recently. In this hypothetical more than likely not much of any premium would be achieved from here. IMO-If the stock settles down, possibly a loss from here, on a hypothetical takeout. IMO-The attraction to a would be suitor here, is the subscriber base, and the niche it serves. Operating efficiencies can be achieved through A bigger parent. Witch already has a big subscriber base in place, to market new and existing products. The market cap is now more reasonable than before the bubble. A lot of small unprofitable companies are seeing merger partners.
You have laid out a case why a company in such dire condition as GOAM would want a merger partner, not why anyone would want to buy GOAM! I don't think those subscribers would be that valuable to someone else. Just trust me on this... NO ONE will buy out GOAM, not here, not now, and I doubt even at a lower price. Given how long this company has been around and floundering, one of the big boys would have made a move already, imo, if GOAM had something worth buying.
How this stock has traded since its IPO just shows it was another company that never deserved to go public in the first place. There are no valid comparisons to make between its valuation then and now, imo, unless you want to party like it's y2k. -g-
Best wishes |
