don, without a doubt the most optimistic scenario, and my fave, for sure, BUT, FNTN does not get to use the market capitalization for M&A since that's mostly our money; they have to go to the well for new shares. 50 million at $5 (given the volatility, $5 is not a guarantee of maintaining the listing) gives FNTN 25 million shares X $5 = only 125 mil for major M&A activity. I don't think that's enough to make the big splash FNTN will need to establish itself as a real player, first out of the box, the best solution, etc.
Also, reading between the lines of MS "no comments" it would seem that some new product areas and markets will be addressed by the proposed M&A activity. Of this we know almost nothing, but it doesn't seem likely that FNTN, at present staffing and equipment levels, can handle much more. They haven't been able to successfully market what they DO have to offer yet (whatever that is; and I'm still not clear who they target. Whoever the target market is, they have not been jumping onboard quickly enough or in any number). And this sales stuff takes time for personnel to come up to speed. Longer than "2nd Q '99" anyway.
I think we're in for some real surprises as they realign their strategy, product, and M&A plans. And I hope their new plans work. God, I hope they work...
All the best,
M. |
