A Fight For Control

Mar 5th, 2009 – Comment

Dave from Cobourg, ON writes about BWC: Hi Lou, Crescendo Partners is looking to force a shareholder meeting of Bridgewater Systems Corp. to force a sale of the company. They evidently think the board is keeping the stock price too low , given their cash and sales projections. BWC closed at $3.69 today. Would this be […]


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Dave from Cobourg, ON writes about BWC:

Hi Lou,
Crescendo Partners is looking to force a shareholder meeting of Bridgewater Systems Corp. to force a sale of the company.

They evidently think the board is keeping the stock price too low , given their cash and sales projections. BWC closed at $3.69 today.

Would this be a good investment to look at, or is it too very risky ?

Many thanks
Dave

Peaceful on the surface

Peaceful on the surface

Hi Dave,

I think that the push by Crescendo to control the board and put Bridgewater up for sale is the one driver in the uptrend in the stock.  BWC has had success growing their revenue and earnings but the stock has lagged below its 2007  IPO price of $5.00.

Churning Under The Surface

Churning Under The Surface

Yes there is risk in the play but at least the stock is off its back and appears to have broken the down slide it was in for the last 2 years. The question is if there is much left to the upside after the move from $1.75 in December of 2008. A good boardroom dust up could help scare up a buyer who wants to buy up the company.

Happy capitalism!

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