I assume the "opportunity" is that you are able to decline the offer ;) ?
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Not related BUT
I remember participating in SKL cash issue at $0.50 in 2009
Seemed to bring SKL back to life
Will ERD issue do the same?
Haven't we all seen companies miraculously avoiding disaster and darting like Phoenix out of the ashes from the fire of nearly certain defeat?
It can be done ... but let's face it, even if some companies can make it - the odds are stacked against this outcome. Most just follow the trend ...
Sometimes it is better to listen to the market, but sure - market is often right, but not always ;) ;
Closed at 70 cents
Down further tomorrow?
Board of directors are a disgrace. They have really screwed shareholders
The vendors of Cortex got seriously screwed too, with a high proportion of the $150m+ consideration being settled by the vesting of shares at a nominal value of $6. And since that was a major transaction virtually doubling the size of ERD, and with Cortex being the dominant merging party in the US geography, most of the senior management and some of the Board come directly from these roots and I have no doubt don't wish to crystalise losses and do wish to deliver the vision. But that isn't the same as taking an objective view as to the best interests of holders that are not from that background.
Unfortunately most have now no option but to wait and see. The best situation may be for another suitor to see the same potential as Volaris and hoover up a bunch of shares on the cheap before joining forces and submitting another offer. Give the status quo 12 months to consolidate and it could be on the block 100% if progress can be shown?
I guess what always surprises me is that people seem to think that just because a Kiwi company is reinventing the wheel, they will afterwards take over the world in a breeze, like walking in sunshine.
I did some analysis on ERD many years ago - and neither their product nor their market position (well, except NZ and Australia) was in any way outstanding from the crowd.
I don't hold them anymore since ages and have as well no connections anymore into the fleet management crowd (I used to work as well with customers coming from that industry), so I have no up to date industry experience (though i assume that clients needs and attitudes have little changed).
However - just curious - did any of the investors do a recent analysis how ERD's product performs today related to the many competitor products?
https://www.g2.com/products/eroad/co...s/alternatives
Do you guys and gals understand how ERD's product links into larger fleet management solutions, and how this compares to the competition? Do truck drivers prefer the ERD solution? What about the fleet managers and the relevant accountants? What reasons would clients have to change from their current solution to ERD?
Anybody understanding, why they expect ERD to take over the world after stalling for more than a decade?
Again - I have no stakes in this particular game, but I find some threads just interesting to help me better understand investor psychology. BTW - interesting similarities to PEB.
Good comments Ron and Peter
I’d add they don’t charge enough for their offer ……need to have decent price increases ….but then some would say that makes them uncompetitive and customers would go elsewhere ….which really says ERoad doesn’t really have a sustainably profit making business.
Apparently former CEO and 12% shareholder Newman didn’t participate in the cap raise
Not a good sign …….but maybe no spare cash at the moment