Tom:
Of course we all hope you are right. These rumors are certainly being circulated. The critical question is do they have any validity. I'd say be very careful. We've heard this kind of stuff for years now---huge deals just over the horizon---just a few more months----final negotiations, etc., etc."
I'd say that if the ISMH deal is not done within a few days, it's gone. As for the new plant configuration, it all seems in the "maybe"---"looks good" category right now. The line now seems to be that the earnings from the re-configured "super plants" will negate any dilution. It sounds wonderful.
If this new configuration and the figures are for real, then the company needs to issue HARD FACTS on them, along with the supporting data. What it involves. Has it been tested? When and at what plants will it go into effect? Are the changes being carried out now, or is this something glimmering on the horizon. What are the costs per plant? It was apparently implied to Tom that this new process will be in effect at Richmond by May 21st. Is this true or not? It's time for FACTS!! The time for rumor, hints, innuendo is over! (Tom, I'd suggest you demand clarification on this.) In the absence of hard facts from the company, this entire story should be dismissed as more puffery.
The Kevin Simpson matter will resolve itself within the next few working days. My guess if that if the don't have a done deal by Friday the 14th, then that flap is over---all over but the shouting (and finger-pointing). There should have been a frank, clarifying statement from the company on all this before now.
There is one fact we can count on if the Simpson deal is indeed gone. That is that the dilution will continue, which means that the share price is going to continue to move in one direction----down. Notice that the bottoms are increasingly lower.
In the absence of factual announcements, this new spate of rumors should be viewed with a healthy scepticism. Remember "Where's the beef?" Well, that now reads, "Where's the facts??"
Veritas |
