RE: Hot off the press18 May 2023 07:55
R8 - the downside is the company will be acquired for pennies not pounds. It has been noted that some share holders, board members want out (times, if memory serves), distressed sellers, the wall MM has built with is pals as a form of potential protection would likely fall quicker (aka cheaper) with him gone, than if he remains. Result - share price gets suppressed further.
There is a difference between a share that has a low share price with protection, than a share with a low share price without protection
One allows time for the business to turn it around, the other allows the vultures to get it on the cheap, cheap cheap.
This company is on the cusp of generating huge revenues and potentially huge profits, yes work to be done to sort that out, macro factors etc, and definitely changes need to be made. But potentially the future could be very bright indeed. Others can see it too, and that’s why they want it, but like all good business they don’t want to pay for it, they want it as cheap as they can get it. Ousting MM plays into their hands.
But others will counter bid I hear you cry. Will they? Can that be guaranteed? What if the counter bid never arrives?
I not a fan I don’t like his willingness to dilute the shareholder, but he can take action to change this along with making other business improvements, very easily. There are many potential scenarios/ways this could go, but if this scenario plays out - MM ousted. You’ll more likely be licking your wounds, rather than a celebratory ice cream.