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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: a128 who wrote (25728)	1/31/2007 3:47:36 AM
From: a128	Read Replies (1) \| Respond to of 78525

Well, D day is here for SPOR. Tender your shares for anywhere between $4.80 & 5.30 or hold for better things. With about 5 holders owning 5% or more, I have to think that 1 or 2 of them will tender some shares. But, we may have picked up other investors such that the share price stays up regardless. And the company clearly suggests the WILL NOT go private without giving remaining holders another opportunity to cash out. "However, we do not intend to discontinue those reporting obligations or to de-list our common stock from Nasdaq without providing all of our remaining shareholders other than affiliates with a mechanism to sell or exchange their shares in one or more going private transactions. As stated above, the Board of Directors has not definitively determined to pursue a “going private” transaction at any time in the future." The book value will be about the same before and after the tender. Insiders dont own much without options and many of those options are below the current price which suggests their motivation is not to tank the shareprice. That said, I believe the officers have all gotten raises recently and except for the whole walmart/reserve apparel fiasco, the company might have posted much better bottom line results recently. Finally, I look back 18 months to when BAMM announced a dutch tender offer and the shares have about doubled. I did sell about 17% recently in the $5.20 range. This is not a slam dunk decision for me by any means but Im not going to tender any shares and will hope for higher prices/better results and/or a buyout in the next 6-18 months. Im banking on the insiders being motivated by their own self interests here and that means they wouldnt do something that would sabotage the value of their stock & options. (Mostly options as a number of managers own zero stock outright) That being said, it could be they were pressured by the large holders so that such holders could get out of some of their shares. If the DTA is over-tendered, that will likely be the case and it might mean the stock will go down before going higher. If few shares are tendered, that would be a positive going forward and thats what Im hoping for. I wish I had a crystal ball.