| Topic Name: |
Sale? |
| Message Name: |
... |
| Date Posted: |
01/27/2006 |
| In Reply To: |
you wrote "You are going to believe what you are going to believe but the sale of BE is unlikely. Frankly, the company has lost roughly $3B off its market cap and we just aren't attractive to buyers." Hey dummy, a company gets MORE attractive to buyers as its market cap goes down. It's called being bought at a "discount". Duh! |
| Message: |
I can see why you are confused with my statement. I was thinking of two separate statements so a compound sentence was an inappropriate grammar vehicle. You are correct that a low market cap can be attractive to buyers, assuming the parts are greater than the whole. However, that is not the case for BE.
Millions are being poured into revamping the brand and reorg. These expenditures are not being capitalized so why would the company use these resources just to window dress? When you are looking to sell, you rip out all unnecessary costs, including marketing.
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