Following from recent Raging Bull Newsletter ....
I found this message on RagingBull and copied it just like it was posted.
"Theres lots of reasons not to own this stock - but they pale in comparison to the one huge reason_to_ own it, and that is they are the technological/market share leader in a potentially explosive growth industry. Now its clear that OMKT has sacrificed profitability in the short run, to capture market leadership. Its a classic business strategy decision. If microsoft has taught us anything - its that installed base counts for alot. It may not payoff, but I'm betting that it will.
Rumors of takeover are heating up again. I've seen these rumors come and go. But
this time, it
appears to me to hold more water. Firstly, Gosh (the founder) has departed from
his involvement in
daily operations. Secondly, the Shareholder rights agreement was just revised to
clarify language
regarding takeover provisions. Thirdly, the CFO resigned (they usually do at the
company being
acquired because there's no room for them). Fourthly, (and this was reported in
PC WEEK on
monday), that OMKT has hired an investment bank to help structure a possible
sale. Finally, the
last time Eichorn appeared on CNBC (late last year), he was asked point blank "is
OMKT for sale?"
and his answer was "at the right price, sure". The rights agreement spells out that
anything less
than $65 per share unsolicited is considered hostile.
So, there are plenty of clues out there that indicated a sale is imminent. We should
get a BIG
premium over the current price." |
