Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Srini Raghavan who wrote (12060)	10/10/1998 12:34:00 AM
From: Marq Spencer	Read Replies (1) \| Respond to of 14631

Upfront disclaimer - I do not have any holdings in REDB. I've been long on IFMX and regretting it :). The part of this acquisition that I do not understand is that REDB's market cap was around $30M when they agreed to this acquisition for $35M. Sounds like a really low premium. Also, if the company has $20+M in cash and cash equivalents, then they're basically throwing in the towel if they're willing to sell for $35M. BTW, I had read many articles on this thread about how IFMX had the best DW technology, etc. If so, why buy REDB? Some times mergers/acquisitions between two struggling companies occur and people/management expect that the result will be a stronger company. That's like tying two sinking rocks together and expecting that they'll float. I do not think that IFMX can afford the distraction, the drain on finances, and the additional technology/customer headaches of acquiring a company like REDB. - Brian.