So if you watch my newsreel at the top of my blog page, you may have seen the headline from SBWire about EasyLink investors who've engaged the law firm of Brodsky & Smith to "investigate" the OTEX acquisition. The link to the article is at the end of this post.
I don't get it. $7.25 is NOT enough when the stock price hasn't been that high since the super-inflated dot.com craze?? From 1999-2001 ESIC stock was all over the charts. Since then, it hasn't been above $7.00 at all. Investors should be happy with the negotiated price. Moreover, maybe next time they can go to the shareholder's meetings and vote for different Directors! Sorry guys - pay attention next time.
I'm irritated at the article too - especially the part that reads, "EasyLink Services’ financial performance improved lately. Its Total Revenue rose from $81.44million for a 12months period ending on July 31, 2010 to $164.77million for the 12months period ending on July 31, 2011 and its Net Income increased over the respective time periods from $17.09million to $24.70million."
HELLO? Not only is that passage a huge understatement - It failed to mention that ESIC acquired Xpedite during that period (Oct. 2010). Granted, with that acquisition it gained top line revenue, but they also assumed a huge amount of Xpedite's debt.
I am not a financial expert, but I see this as a greedy play by the ESIC investors. Take your money and run, else you'll spend it on legal fees.
Here's the article: http://www.sbwire.com/press-releases/easylink-services-international-corp-nasdaqesic-stockholder-alert-merger-under-investigation-140960.htm
