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Gold/Mining/Energy : Nuvo Research Inc -- Ignore unavailable to you. Want to Upgrade?

To: DaveAu who wrote (13576)	8/29/2004 12:51:07 AM
From: axial	Read Replies (1) \| Respond to of 14101

"A lot of shareholders probably believe that the dissident group are their saviours. This is almost certainly wishful thinking. The group may be able to revive the company but current shareholders will not be the beneficiaries. They will be massively diluted and new management will be awarded large option grants at low prices. REK will walk away with 3/4 million bucks in severance. The company may not pay immediately and they may make all kinds of allegations of improprieties but eventually a settlement will be made and in my experience, the company almost always burns, not the former CEO." Dave, a coherent argument, with which I agree. But an argument for what? Inaction? Dimethaid Research, as we have known it, is dead. If the company survives, in some altered form, then the need for further dilution as an outcome of financing is a given no matter who wins. However, on the MMC side of the equation, it is within the power of Dr. Kuhne to make the need for such financing less onerous. That issue may well tip the balance when survival is the presence or absence of a crucial few millions. If the assumption is that the company won't survive - then the question becomes what to do with the remains? Do we want existing management to be the undertaker? Do we, as shareholders, want existing management to govern the disposal of the remains - and the evidence?? Did you watch the crash-and-burn of PIL? I did. There was nothing left for shareholders. There was NO one who was willing to go in, pick up the pieces, and try to turn the company into a going concern, again. Shareholders had NO alternatives. I think the problem lies in the use of the word "saviours" - and perhaps in unrealistic expectations. Maybe we should redefine the term "winning". At the very best, "winning" means painful reconstruction. That's as good as it will get. There are just too many unknowns. The status of the Pennsaid NDA, for instance. The truth about WF10. The reality is that any potential financiers will want some hard answers. Judging by management's failure to invest in the enterprise it has "governed", the future for Dimethaid's products is not attractive. Information that might free up investment for development might conceivably result in financing, but only if: A - Management has the confidence of financiers. As we have seen, existing management does not (QED) B - The information now held by management is made available. That won't happen unless existing management is kicked out. These things are interdependent - it's a chicken-and-egg scenario, and the incumbents hold all the cards. Unless The Markham Gang gets the boot, we'll never know what might have been. Financing in either case is "iffy". However, we know the record of existing management, and we have seen the esteem in which they are held by The Street's financiers. There's one other aspect to the question of "action or inaction" that we should explore. As Dimethaid's affairs have spiralled downward, and as each ugly truth revealed itself, many shareholders have been baffled and infuriated by management's absolute intransigence. There's little doubt in many investors' minds that Dimethaid in 2003 was more "savable" than Dimethaid, now. Despite their anger, many shareholders have reconciled themselve to losses that will never be regained. That being the case, those shareholders want only to express how they feel about how they've been treated. Elections are not only won - sometimes they're lost. Witness the anti-Mulroney, anti-Conservative Liberal landslide - from which the Conservative Party never really recovered. Dimethaid Research may never really recover, either. Nevertheless, many shareholders want to have their say. Because of the MMC, they'll have a voice. PIL investors? They never had the chance. The realities aren't pretty - but the opportunity to tell existing management what shareholders think is entirely the result of the MMC's existence. Will the MMC win? Perhaps not. Maybe The Markham Gang will lose. Regards, Jim