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General
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Is the crypto boom & bust just part of 'every bubble being pricked' in wider market sell-off?
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<blockquote data-quote="user 4386" data-source="post: 658435" data-attributes="member: 4386"><p>Yes, motivations can be different. But often the major holders have done more homework (eg might know that in the longer term the company does not have the assets to develop further or might even have a cash-flow crisis looming, which can be alleviated by a takeover by a better cashed up company. Conversely, the company doing the takeover would not do it if they did not think it was to their (and therefore as a consequence other shareholders) advantage). For example when a commodity price is crashing, the present company may know it cannot ride out the storm despite having major ore reserves for the long-term, whereas a better cashed-up company sees it can do so, so can take it over as a long-term asset. It is difficult to see why any company would purposely takeover a company so as to be at a disadvantage (and this would apply to all shareholders). Companies simply often get it wrong....</p></blockquote><p></p>
[QUOTE="user 4386, post: 658435, member: 4386"] Yes, motivations can be different. But often the major holders have done more homework (eg might know that in the longer term the company does not have the assets to develop further or might even have a cash-flow crisis looming, which can be alleviated by a takeover by a better cashed up company. Conversely, the company doing the takeover would not do it if they did not think it was to their (and therefore as a consequence other shareholders) advantage). For example when a commodity price is crashing, the present company may know it cannot ride out the storm despite having major ore reserves for the long-term, whereas a better cashed-up company sees it can do so, so can take it over as a long-term asset. It is difficult to see why any company would purposely takeover a company so as to be at a disadvantage (and this would apply to all shareholders). Companies simply often get it wrong.... [/QUOTE]
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General
General Chat
Is the crypto boom & bust just part of 'every bubble being pricked' in wider market sell-off?
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