Just a thought1 Apr 2012 01:35
Wandering if there is more to mouchel than meets the eye.
Having reading through their report, I notice they have highlight ' significant dilution serval times. Is this necessary? If a company exercise such option would they not want a higher sp to maximise benefit? Could they not just use dilution without the word significant? Or just simply say "all options are being considered".
There is A strategy used by companies to fend off bidders known as poison pill, quote:
"A strategy used by corporations to discourage hostile takeovers. With a poison pill, the target company attempts to make its stock less attractive to the acquirer. "
From reading the report I feel it's trying to scared off investors rather than trying to reduce the negativity of the result, so that a higher sp can be achieve for a dilution. It just doesn't make sense??
Plus the bit that say " expect no growth etc" again is this necessary?
Any thoughts? Thanks