This is not an IPO and $ 1 price is too high IMO. Why? With an IPO, the investor gets a prospectus and basically invests in a VISION of a bright future. The IPO itself generates cash from like minded investors, with long term views, who will ride out the share price bumps, factor in R&D and other cash outflows to achieve the stated goal.
GVIL investors invested in a modem company IMO. I certainly did when I had shares until February. What are the shareholders investing in now? According to public releases, pretty much thin air if it's a going concern (if not of course, then a dollar may be right if the shareholders decide to fold the company??).
I don't see how this deal will be ratified by shareholders, unless the mgmt clearly defines the new business better. Where's is the GVIL board? Don't they have a fiduciary responsibility to the shareholders, to at least let them know what is going on with something so fundamental?
My view of the stock price> it'll hold and slid around the cash value. Also, maybe buyers are factoring in that the GVIL shareholders may not ratify the BOCA deal and that slows the slide. In any case, it's a risky investment IMO.
Have your parachutes in the rocket (which seems to be out of fuel), because it could go both ways.
Sincerely,
Ben |
