EasyLink investors are greedy?

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

Yes, but will it get “EASIER”? Open Text announces Easylink acquisition plans…

I was excited to learn that Open Text (NASDAQ:OTEX) (TSX: OTC) recently announced its acquisition of EasyLink (NASDAQ: ESIC) for a modest $7.25 per share. EasyLink, who’s latest balance sheet shows a $243M in assets versus a $143M in liabilities (source: Yahoo! Finance) has not seen a trade price at that level in a very long time.  Trading volume, which normally hovers in the 10’s of thousands of shares per day, jumped to 12M+ shares on May 2, 2012 after the announcement.