re: Ann: Clough and Forge create long term st...
OK, correct my maths here if I'm wrong but... should the placement of 10,257,262 to CLO at $1.90 go ahead it will (theoretically) dilute the share price (based on today's close of $2.19) to $2.15. Not the hugest hit to take given the potential benefits of the "alliance" (if there are any).
After that you have the choice to not sell your stock at the INSULTING price of $2.10. I am thinking of mailing my copy of "Corporate Valuation - An easy guide to measuring value" by David Frykman & Jakob Tolleryd. It's a short and easy read outlining how to value a company.
In my opinion, by recommending the sale of their shareholders stock at such a ridiculous price, the management of Forge Group have tarnished their reputation of building shareholder value and by selling 50% of their own stock they have embarrassed themselves as businessmen.
Who knows - maybe there is more to this alliance than meets the eye. I truly hope so.
FGE Price at posting:
$2.19 Sentiment: None Disclosure: Held
