The following is a direct quote from a private message I received, I felt it appropriate to add it, and a response, to the public thread as there may still be others feeling the same way.
Quote - "You sound to me as if you are a member of current WRN management. You may not be trying to justify what they plan on doing re consolidation but that is the way you come across to me."
My response to this is pretty basic. I am not in management nor do I have any connections to them outside of being an investor and critic. Nor am I in any way attempting to convince anyone to buy or hold or sell their interest in this company. I figure that I can get very angry and post nothing more than my fuming or I can attempt to analyze what I see happening and post that instead. I have chosen to do the latter. For the most part I don't post period, unless I feel I have some form of beneficial information or opinion to add. For this reason, I usually wait until I calm down and can take as rational an approach as possible, before posting.
Now to add a note specific to consolidation. I am not generally in favor of consolidations, however, I am also not in favor of having an astronomical number of shares outstanding. When the rumors of a potential major deal originally surfaced, I had heard the suggestion that it was likely to be equal to, or greater than, the current Value of the company. If this is indeed the case and it is translated into share value, that would mean we would have nearly 60M shares outstanding when completed. I also do not see any way, not to translate it into share structure, as we all know that we do not have the cash to do something of that magnitude, on hand. To be blunt, I would rather see a consolidation, in conjunction with a deal of that size, than to see the 60M shares out. My assessment, is my opinion on the lesser of 2 evils, NOT an endorsement of a non-strategic consolidation and I will stand by this statement.
Any discussion of these issues or any others are, as always, welcomed.
Salut,
Leigh McBain |
