Monday, May 24, 2010

An open letter to Stanley shareholders

Sometimes the best option is to take the money and run.

Our recently accounted buyout of Stanley is creating a light turmoil that frankly I didn't expect. Some people feel that a 21% premium over market price is not enough, and I gotta say I feel offended by such unreasonable expectations. What's a fair price if not what buyers of your public shares are willing to pay? Is 31% over a fair price? Or 26? Or maybe 200%?

Sometimes I get the feeling that U.S. shareholders are getting used to free lunches, used to have their fat butt saved by the government. Americans are addicted to state capitalism, the Obama administration saved a bunch of turds from self-destruction, General Motors, AIG, Freddie Mac, all those douchebags should have sink like any mediocre organization deserve.

Point is, shareholders sometimes need to accept that their shares are worth zero, like Bear Stearns. Sometimes a company is saved from sinking by generous corporate raiders, like HP purchasing Palm - and they paid a good premium on that. And sometimes a good company is purchased by an even greater company so that a merged entity can continue its golden journey on the profitable growth path.

But what can I say, sometimes people just want more money even if they can't explain why. And don't throw yourself into the arms of C-grade lawyers lurking on Yahoo's message boards looking to rack a huge fee of Stanley's shareholders. These scumbags don't actually give a damn, I hope you know that?

So to all SXE shareholders out there, jump on the CGI ship while the stock is still under $20. Hear what Chip has to say.

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