This is the reason CHKR is priced so low...
Basically, it turns out, that the CHKR (and RLLY) prices have been manipulated down by these "pretend-attempts" from the past 1-2 years to merge CHKR and RLLY together in various ways (which have all failed or been withdrawn). In essence, CKE restaurants (CKR) eventually wants to take over CHKR and RLLY completely (as has been known all along), and they can do it much more cheaply if CHKR and RLLY are depressed in price. Note that Bill Foley is really the mastermind of all of this as he's basically in charge of CKR, CHKR and RLLY so he can set up these "merger agreements" whenever he wants (which later will be withdrawn). Of course, there are some charges that show up (as a result) in the quarterly reports, but the valuation of the stocks goes down more than the charges (since investors get fed up with all these games/perceived incompetence and put their money elsewhere), and in the long-term, CKR will be able to grab CHKR/RLLY stock very cheaply. (It IS fishy that CKR would be at about half its late '96 value, yet be in much better financial condition!!!)
Sorry I had to break it to you this way...I, by the way, have been out of this stock for some time and have no interest in reinvesting at this time (mainly because I am using my money for other things, like buying a house). I would, though, like to see other people's reactions to this. |
