Bosco, Richard, Ted, et. al.,
The total sum of this "rights" plan equates to only one thing the holders of this equity must now count on. Hackworth and company have to perform. Prior to this "rights" plan there were a couple of things to look at to make this stock pay off. One was certainly what I was espousing and that was someone coming in, and selling off certain portions of the company. What would have that been worth in terms of stock price? Your guess is as good as mine but I would have ventured somewhere in the low to mid 20's. Not much help for those folks holding at or above those levels but certainly something fair. Now this tactic has become way to expensive.
Now, Cirrus has to perform with back to back to back to back quarters with an eps above the $.15 range or this stock will stay stuck at $10 - $12 (IMO). I am not saying they can or can't do this but based on track record, the markets in general, Cirrus's competition, and now the "rights" plan it is highly unlikely that this stock will go anywhere but sideways.
Hackworth, Guzy, Patil, all of these guys, In My Very Humble, oh forget the humble part, Opinion, just gave everyone a large dose of a Royal Screw! It will definitely be very interesting to see what if anything Mr. Teo can do. He just may have to watch his very large investment shrivel to a very large loss.
Calvin Scott |
