Lot of excellent information in the PR today. I'll
Post# of 32638
Having done a lot of M&A, the answer is very obvious to me when I look at that one sentence in context of the entire paragraph.
Quote:
Of course I recognize that we are all disappointed with the current share price caused by a combination of unprecedented, prolonged poor capital markets conditions and the corresponding machinations of bad actors. However, share price has very little to do with the value a strategic buyer places on the business in a sale. Accordingly, while we have virtually no control over market conditions and the share price, we do have control over the intrinsic value we are creating as evidenced by the long list of achievements detailed above. As such, we believe our long-term investors may have an opportunity to generate returns that are not reflected in the share price alone.
If a company is valued somewhat fairly, a buyout can still be a multiple of the current sp. Example x2, x3, etc.
If a company is severely undervalued or shorted to death, the buyout would come at a crazy multiple.
If you think about Verb's market cap is $3.3M at the moment and TalkShopLive was valued at $81M, that is already a x25 multiple and my opinion is, Market.Live is way better and has much more potential.
Maybe your next question is...
Do shareholders have to wait for the sale of Market.Live for a pay day?
Not necessarily. I believe the investment community will catch on the exponential multiple potential that will drive the sp up as Verb continues to execute like they did the last 6 months. When/IF Verb decides to sell, it would be reasonable for the sp to rise to be within a x2 to x3 of what the buyer pays. Certainly not x25, x100 or whatever value you place on Verb today and in 2024.
Shorts aren't going to be caught flat footed with that kind of risk as there are easier targets.