RE: Shareholder Alert - What are the shares for? SGE+ORY
posted on
Jul 15, 2005 08:36AM
First, which way to vote:
As I`ve said before, IF there`s anything to my conjecture (IF it`s even close), the company won`t say a word about it till the deal is done. If the deal is contingent on the outcome of the vote, it won`t get done till after the votes are counted. So we won`t hear anything about it till AFTER the AMS (when ever the votes are tabulated, and the paper is signed).
The thing I think about along these lines is the risk factor. IF there is a deal on the table as I suggest and Wencor is playing the heavy (which they are now clearly in a position to be), and IF the deal doesn`t get done due to a prevailing NO vote, and IF this means no more business from Wencor after year`s end (from our ONLY CUSTOMER); where would that put us? We here of possibilities for other business: POSSIBILITIES. So do you really want to kill the bird in your hand and go chasing the others in the bushes?
That scenario aside; would you really want to deny EDIG the ``poison pill`` and see an unfriendly adversary do a hostile take-over? Would you really want to deny EDIG the leverage to finace the up-front costs of a huge order from a multi-billion dollar OEM? Would you really want to deny EDIG the capability of continuing as a going concern?
RISK! It`s more than a board game about world domination. IF ANY of the above scenarios is the reason for the request, and you turn it down, are you willing to cheerfully accept the risk of the probable outcome?
Personally, I rather be in situation where my stock holdings have at least a possibility of appreciating rather than be in a situation where I`m watching it go to zero.
You considered the risk of buying this stock. You`ve considered the risk of holding it (and buying more). Now you must consider the risk associated with your vote.....
In response to the post to which this replies: NO! On the contrary (as I`ve already posted), one reason I don`t think Wencor would want more than a 50% stake in EDIG is purely to avoid getting in to the ``public company`` world. If they were the least bit interested in doing that, they could just take Wencor public with an IPO.
JMHOs,
SGE