Double E, and other LRL followers:
The future may be looking bright for management but only if they still have a company to manage.
If you review the facts, shareholders were promised the moon last year only to see their stake diluted through one private placement after another because Luxor couldn't sell enough pieces of wood to make rent. Today things look different, and feel different, but the company ain't talking or communicating. I think this is a real positive but, from the grievances which have made their way to my private E-mail, I also think that the company is most concerned about shareholder loyalty in a would-be buyout situation.
Just think, after years of being jerked around by the same crew who still runs this show, wouldn't it be great to cash out for one or two more Canadian bucks at the first opportunity? I have spoken to quite a few people who would, and I bet Budd has talked to a bunch more.
That's probably why the silence and total lack of news.
IMAL's verdict?
Very bullish indeed.
Last year, when Luxor was spinning its wheels, all we heard was how great things were going. The truth? A couple hundred grand in sales and a rapidly worsening relationship with major shareholders.
Today, total change of situation and attitude. Professional market-making and a clamp on the hype. The big question remains though, can you trust the majority of your shareholders to stick with your game plan? Give them too much information, and they may end up ganging up and controlling any negotiations. Give them too little and they may end up selling prematurely, possibly exposing the company to a certain liability risk, should a buyout eventually occur. I have seen it happen more than once.
IMAL's position today?
Aggressive buyer at these levels. The smoke is too thick to ignore.
Good to be back; it's shaping up to be an exciting year.
IMAL
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