SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : GWRX Leader in Smart Phone Market
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Greg Rich who wrote (775)2/23/1999 10:10:00 PM
From: N. Saliba  Read Replies (1) of 960
 
I did not like it when I first realized the fact of the deal, selling the whole office vs lending it out.

If looked at it differently here's what I see (pros and cons):

-Premium that was paid was identical to the share dilution (no net change here). The premium was based on an undervalued stock (in my opinion); therefore, the premium isn't so premium in my book. One thing was gained is the new trading range the stock is establishing.

-Getting 5 million when the company is in danger of going under is worth a whole lot more the 5 million itself. Also the added cash prevented the company from making desperate moves to maintain its existence (like secondary offering at $1 a share or so).

-My guess is the company will report 1/2 million or so less in the red as a result of this deal, not bad for getting so close to a break-even point.

-Last, how can you manage 19 engineers few thousand miles away from the headquarters without paying premium overhead, this will slash big portion of the inefficiency in the system.

-I hoped the deal was a lending deal with a cost plus billing, just in case Amazon.com needs more engineers Geos will bag more of the proceeds. A bummer

These are my few points of the deal, in general it is not too bad but it could have been better.

N.S.

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News