It is very interesting to sit here and listen to the conspiracy theories abound. Other than buying the remaining stock at the bid price, I think that as Giddy has pointed out you don't spend up to $90m to sit around and scare the shareholders, that is best left to the departing Board members, who have what little they have of their reputations to salvage. Given that three out of them dont have shares they have no interest in the share price. Bring on the EGM! The original bidders statement from Minor outlined a number of problems with Oaks other than the well documented ones (Debt/Dubai etc) and stated that they intend to address these such as purchasing freehold etc. If the stock does remain listed which I suspect that a lot of shareholders believe, over a longer period the share price should improve. Payment of dividends while it may make shareholders happy is sometimes not the best use of funds. Given that we are entering a period of increasing interest rates, increasing debt to fund growth is not going to be a wise choice. This company has always enjoyed a good cash flow and re-investing the funds may be a better result. It is going to take a little while for the dust to settle and we may all then see where it is going. In the short term the choice may be easy sell and move on. If you are looking longer term for a capital growth it could be a good thing. I am also of the opinion that Minor was always the one with more potential to fix this company than either the remnants of the Board or the doughnut company.
OAK Price at posting:
52.0¢ Sentiment: Hold Disclosure: Not Held
