45c is indeed an interesting target. Intel's notes exercise price is at 45c - if (and when!) it does exercise, Intel will become a major shareholder in a strategic distributor of its WIMAX chips - which makes a lot of sense from a vertical integration point of view. Also UNW needs to raise fresh funds and why do it before giving Intel a chance to come in at 45c and then give them a chance to participate in capital raising without being diluted.
PLUS the cashflow issue that kept a lid on the sp is now less dominant, as the company's cashflow is improving, the client base is growing and the government grants will keep on coming in for awhile yet. Then there is a long awaited possibility of an equity tie up with UNW's other partners in broadband space (the other companies that apply and continue to win government grants in partnership with UNW).
All of this is likely to work for a higher sp from now. Today was a great example when the sellers suddenly disappeared and there was no volume on the sell side as far as the depth went.
So 45c is imo is a real FIRST target. Any thoughts?
UNW
unwired group limited
