N.S.
I don't currently have a position in GWRX but still follow the stock. FWIW, here are my thoughts on the deal with Amazon.
Amazon bought 7% of Geoworks for $5,000,000. I don't know if they bought the stock on the open market but based on 16,064,000 shares outstanding, Amazon bought 1,124,480 shares at an average price of $4.45 per share. Do you know if Amazon can sell the shares whenever they want or do they have to hold them for a certain amount of time? I don't see how GWRX benefits from Amazon's equity investment unless GWRX issued more stock and took in some cash. If they issued new stock, there will be some dilution of the existing shares and my calculations will be off a little. If I owned GWRX, I would find out if this is what they did. If they didn't issue new stock, then how does GWRX benefit financially from Amazon's investment? Does Amazon have representation on Geos Board of Directors now?
They also assumed the lease on Geowork's Seattle office and hired 19 of 20 engineers. I don't know why they didn't hire the last engineer. Either he is so good that Geoworks wouldn't let him go or he is so bad that Amazon didn't want him LOL. At any rate, it looks like Geoworks got the short end of the stick on this part of the deal because Amazon didn't pay a dime for this part of Geos' business. Companies sell divisions sometimes, but they generally receive cash or stock or something of tangible value. The only thing that Amazon did was relieve Geoworks of their lease obligation. What a deal for Amazon! I really don't understand why Amazon wanted this part of Geos business but that's for Amazon shareholders to worry about.
Another thing that I would look at if I owned GWRX...what percentage of their personnel base did Amazon get? What is left of Geoworks now? What did the employees in Seattle do and who will do that work now? Are they going to stop working on whatever those people were working on?
The press release is very vague and if I was an investor in GWRX, as opposed to a trader, I would want to know the answers to these questions. The reason that I bring these up is because I haven't seen them discussed on this thread yet and I honestly think these questions should be considered. You have been a long term holder of GWRX and I wish you good luck with the stock.
What ever happened to Bird (I think that was his nick name)?
Best of luck to you and all other holders of this stock.
Dan |
