One would assume that the initial bids of $1.10 were low ball (at the time) with bidders allowing room to move higher. Since then the company announced reduced earnings and forcast further downgrades but with two bidders in the game the final price could still reach $1.10 in my view.
It depends how committed they suitors are to the aquisition. A profit downgrade may have been expected anyway.
The falling market value of the stock does create an awkward situation where there is little advantage in being the first bidder out of the blocks. Its would be embarrasing if the first bid is too low and promptly trumped be a more realistic bid from the second party. If the bidders are not particularly keen this would discourage any bids from being made at all.
On the other hand however if the first bid is high, it may encourage the other bidder to simply drop out.
I'm predicting a first bid, albeit a late one, at a price above $1.
That's my own analysis. I'm holding with an average entry of 69.5 cents.
Dreamcatcher
BBG Price at posting:
60.6¢ Sentiment: Hold Disclosure: Held
