If remaining listed, the best strategy for private equity or a strategic would be majority investor, is to provide a fig leaf to suck lots of punters in initially on "good news", and so that nobody can say they didn't have a chance to get out, avoids lawsuits etc too. Then you start a bad news cycle, and avoid providing any good news at all, while carrying out multiple dilutive cap raises that are underwritten tactically, and gain the complicity of management who want to set their options and incentives near the bottom of the SP cycle. The optimists gradually turn to pessimists and sell, as they are not psychologically equipped to deal with bad news. Then once you can't hide the change in the business cycle, and management have their bargain incentives in place etc, you start the good news cycle etc etc, change the basis of your forward looking statements etc
One possible way - from my very cynical mind - for entertainment purposes. I don't know anything about any of the players at all -so take it with a grain of salt.
- Forums
- ASX - By Stock
- Possible de listing of MMA Offshore.
If remaining listed, the best strategy for private equity or a...
-
-
- There are more pages in this discussion • 19 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add MRM (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
ACW
ACTINOGEN MEDICAL LIMITED
Andy Udell, CCO
Andy Udell
CCO
SPONSORED BY The Market Online