Q: Hi, I still have 2000 shares of DND which I bought at much higher levels. With the yet again announcement of a another strategic review, would you sell 1/4 (or even 1/2) position into this mini rally...up approx 30% today vs yesterdays close. As we all know this stock has been a major disappointment for various/multiple reasons the last several years....yet once showed so much promise. I have reluctantly held on hoping/praying ;) for a buyout. What do you think a fair price might be in a buyout situation...around the $20 level? I thought that number was mentioned in a news release several weeks ago.
I suspect if the strategic review fails again, this stock will retreat back to the $7 range.
I recall you suggested a sell perhaps a year ago or so.
cheers....
I suspect if the strategic review fails again, this stock will retreat back to the $7 range.
I recall you suggested a sell perhaps a year ago or so.
cheers....
5i Research Answer:
There was a 'soft' $20 bid, but it was not official. Now, we think that number would be too high, considering the company's prospects. As noted, the company has been up for sale before. With the former CEO involved with the fund that forced this change, we might not strongly expect a sale (we imagine he just wants to be back in charge eventually). So, we think a sale of 1/4 or 1/3 makes good sense on today's big pop.