IDC's new anti-hostile takeover strategy?
Is mgt's newfound interest in working directly to enhance "shareholder value" completely altruistic - or perhaps finally a result of shareholders complaints here and elsewhere)? Perhaps.
I suggest another motivation for mgt's very unusual (for IDC) behavior this week in its press release. The release departed from previously super-cautious statements of already established facts. All of a sudden, mgt is saying we WILL report much stronger earnings. And mgt is briefing everybody on ongoing activities, like field trials. Formerly, no word would have been given until trials were completed and had a chance to marinate for awhile. And mgt is saying it expects the good news to be sustained (that's going way, way out on a limb for Bill Doyle). Why? I have no inside info, nor even outside info. I haven't heard any rumors other than what I read here. But here's a suggestion (pure hypothesis, conjecture, etc.):
Mgt perhaps senses that a hostile takeover is very possible, given that our "peers" (as Bill Doyle calls them) in the industry are impressed with our technology (as Bill Doyle says publicly) and our share price is ridiculously low. So to make it more expensive for either a hostile or friendly takeover, Bill Doyle et al are beginning to engineer a strategy for substantially increasing shareholder value. Thursday's early release of 4q earnings estimate plus very positive forward looking statements (formerly forbidden at IDC)are perhaps step one in such a strategy. Other steps are perhaps planned to coincide with events mgt is aware of and i am not.
Mgt, with huge amounts of stock options, doesn't want to give away the company. But they know our peers know how much we are really worth ($20? $50 a ahare? more?) and they know our peers have very deep pockets and some have said they are looking to acquire smaller fish - (especially cash cows like IDC?)
So, I suggest, this may be a preemptive strategy by Doyle et al to systematically raise share prices to a level more realistic of true value before some big fish gobbles us up in one bite. If it is - great - good thinking mgt. Keep it up!
Just a suggestion for thought!
Bill
P.S. To visitors - most of the IDC messaging is done over at www.ragingbull.com Come join the party this weekend! |
