Awful deal unless we see something like what happened with the AOL/NSCP deal.
Shareholders get a max of 24 million, unless ORB trades over 32.35, then we can get more.
ORB gets a good deal, even though they get the debt, which will most likely be wiped clean since they have a good balance sheet, and more stock to offer.
ORB has traded over 32.
For example, if ORB trades at 36, we get 36 X 745,000 or 26,820,000, or about $7 per share.
If ORB trades at $40, we get 40 X 745,000, or $8 per share.
I suspect due diligence found something not available to shareholders.
This is my opinion only.
Luckily, I bought heavily in the 2/3 range, and sold most at +7. However, I remain very disappointed about the return on my remaining shares.
I like the ORB company, and have owned the stock before, but not currently. My initial view is hold on, and watch the ORB.
I feel very sorry for the LEIX employees. Many are obviously soon to be redundant. I hope not.
I am also appalled of the lack of announcement and fervor by Darrel Lowrance on this deal. He obviously is hiding himself, as this is not a gallant exit for this man.
I may change my mind, come to think of it. SELL, and move on with a tiny profit on the remaining. I'll think over the weekend.
Now if it was a pure stock swap, of the 1.2 million shares, this deal would be just fine. But this sliding scale, down to 745,000 tells me ORB wants to cap it. Good move on ORB. LEIX must not have the hand. The key is to now do due diligence on ORB before you decide what your are going to do.
Good Trading, LF |
