You have to ask yourself this: why did Jindal straight off the bat purchase shares from Benny at 42 cents? They obviously see (or saw) value in RCI at that price.
I think this game is far from over. RCI will get taken out and it will be over 50 cents (because of the options that Benny has at a strike price of 50 cents).
Just a matter of patience.
And worst case, they don't get taken out, I think the demand for coke is quite strong, prices are recovering so RCI should be back to profitability in no time. Plus RCI has over $26 million in cash, more than enough to ride out any earnings volatility.
I'm happy that management sent Jindal packing. I have never seen such extraordinary (silly) conditions in a non-binding takeover clause.
Ralph
RCI Price at posting:
25.0¢ Sentiment: Hold Disclosure: Held