(Total Views: 1110)
Posted On: 03/10/2019 5:12:57 PM
Post# of 75087
Very patient!! Many are overlooking a very likely scenario. When a company has little to no debt, and big revenues set to flow in the coming weeks/months ahead, and connections that can land them the right type of investment capital to buy up and return shares to the treasury, AND the management group is sitting on tidy stacks of common shares, you have a step change situation looming.
Nearly instant valuation jump for the stockholders would result. Some would foolishly knock this strategy saying it'll hurt the company taking on any debt, but again, it's stated FOOLISHLY.
The reason for that is simple: First of all some well placed debt is good as it helps protect against hostile takeover, and shares purchased and returned to the treasury early on (for a rapidly growing company) will actually net them PROFIT.
Initially, just in the form of the tremendous savings, as waiting until later would cost so much more, and with the major revenue streams flowing in, the combination will make it incredibly easy to sell relatively few higher priced shares at a later date to pay off the capital plus interest acquired for such a move.
The management team and everyone else holding shares long term will be HUGE winners, and buy out offers will only get bigger. Merger is more likely, but this little company can grow into a big one EASILY in the next 1 to 2 years, with the stock increasing 10's of times on the way. IMHO, it's hold for the win, even more than ever before.
Nearly instant valuation jump for the stockholders would result. Some would foolishly knock this strategy saying it'll hurt the company taking on any debt, but again, it's stated FOOLISHLY.
The reason for that is simple: First of all some well placed debt is good as it helps protect against hostile takeover, and shares purchased and returned to the treasury early on (for a rapidly growing company) will actually net them PROFIT.
Initially, just in the form of the tremendous savings, as waiting until later would cost so much more, and with the major revenue streams flowing in, the combination will make it incredibly easy to sell relatively few higher priced shares at a later date to pay off the capital plus interest acquired for such a move.
The management team and everyone else holding shares long term will be HUGE winners, and buy out offers will only get bigger. Merger is more likely, but this little company can grow into a big one EASILY in the next 1 to 2 years, with the stock increasing 10's of times on the way. IMHO, it's hold for the win, even more than ever before.
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