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Message: Eventually Fundamentals can play a role....

I keep saying that ultimately the fundamentals of a publicly traded company....that they're meaningless, echoing Cramer's comments that the real mechanics of the market, the manipulative games played by the big players....that those games ultimately determine what a stock trades at.

But fundamentals can come into play, and I can give a couple of specific examples with which I have direct experience. Both are retirement home companies, one was Regal Lifestyles and the other was Amica Mature Lifestyles. Both were publicly traded companies trading under the symbols RLC and ACC respectively...and both had some short interest, especially RLC which was up around 500K or over 1% of the float.

When did fundamentals come into play? When they were bought out.

RLC ended up going private with about a 40% premium of where the PPS had been trading, and in Amica's case the premium was almost 100%.

If BP comes knocking looking to acquire Resverlogix, Zenith or any parts thereof.....the valuation they arrive at will have precious little to do with what RVX shares are trading for.

RLC and ACC were dividend paying companies with revenues and fixed assets....so things were probably easier in my opinion....with Resverlogix and/or Zenith there is a lot of gray area though.

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