Now, regardless of what the latest news announcement implies,
I still don't think ACCO can rip our shares from us without some
validation from the current minority shareholders.
As I recall, upon reading the 30-some odd page tender
circular, there was some mention of a "subsequent transaction",
and the wording there seemed to indicate that:
If a subsequent transaction offer were made:
a) The minority shareholders would get to vote on the
offer, and either a simple (i.e. half) or two-thirds
majority would be necessary for the majority shareholder
to acquire the remainder of the shares.
b) The majority shareholder does NOT GET TO VOTE IN THIS
SUBSEQUENT TRANSACTION VOTE
Of course, the last may seem obvious, but apparently it is
obvious only to everyone except ACCO & current Gravis Bored of
Duh-rectors. They have several times indicated that they think they
can vote their shares in the upcoming subsequent transaction vote.
This is implied in both the tender circular and their latest news
release. Its rather amazing isn't it? Actually amazing isn't
the right word here. Perhaps galling, condescending, disdaining,
or patronizing would be more appropriate?
Regardless, they are in a for a tougher time than with the
first tender offer. Everyone left is someone who rejected their
first 45 cent offer. And now, the stock is clearly worth more
than it was worth scant months ago, witness:
a) The company will not go bankrupt now, period.
(This was the major threat to ramrod the first tender offer,
and it now clearly not applicable, with the nine million
dollars already supplied by ACCO)
b) Successful launch of the: Gravis Game Pad Pro. This new
pad will garner a significant percentage of the programmable
game pad market this Christmas, and it's only major competition
is the Microsoft game pad (at $39.99 to $45.99 store prices
compared to $29.99 street price for Gravis Pro.)
c) Successful launch of the: Firebird Two. Clearly the superior
flight stick being offered this Christmas. The only serious
competition is the Wingman Warrior because of its "spin" control,
but the Firebird Two should be dominant.
d) Marketing deal with CompUSA. This is probably the most
promising of all. Gravis has had great products before, but
has never seemed to put it together with powerful marketing
(though some of the bundling deals were pretty successful).
e) Release of new, updated drivers for the Gravis Ultrasound
PnP. These are rather late and sorely needed to keep the
Ultrasound's performance at the forefront.
These and many more upcoming reasons (release of BlackHawk
stick, etc) easily justify a price of much greater than
45 cents for this stock, and I estimate the current value of this
stock at between 80 cents and $1.00 Canadian. However, after the
upcoming Christmas season, if the profits are as good as I expect,
the stock would more likely be worth in the 2 to 3 dollar range.
So, are we going to accept a low-ball bid of 45 or maybe 50
or 55 cents from the current Bored of Duh-rectors? I am willing to
take my chances and see what the 4th quarter brings, especially now
that Gravis is back on its feet, with some dynamite new products,
and coming into its historically strongest quarter.
I say that we, the minority shareholders, should unite and
reject any offer that the majority shareholders make, regardless of
price. (Though you can bet it won't be much...) I am willing to wait
six months for a two dollar a share or greater payoff......
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