Q: converge is doing a strategic review to maximize shareholder value-mgmts words not mine.
after initial pop from 4-5 stock is selling off.
analysts think its unlikely to go for less than 9-10. whats your opinion.and is the sell off tax loss selling?
dave
5i Research Answer:
There likely is still a bit of tax loss selling. Valuation in a deal is always debatable. A strategic buyer can pay more. Trading now at 0.4X sales, there are literally dozens of companies with much higher valuations that could make a deal work and add $3B in sales (2023 estimates). Regardless of what it is 'worth', with the stock at $12 less than a year ago, we highly doubt management would entertain bids at half that level, and $8 is probably their 'talking' level.