Image Entertainment (DISK), that penny stock we bought at $1.25 in hopes the announced take-out at $2.75 will actually take place, closed Friday at $1.18. Why? Maybe because DISK said Thursday Nyx will exercise its option to extend the merger closing date (Gee, what a surprise! This is like what, the fourth time?) from April 6 to April 20. The extension only becomes effective, however, upon Nyx's deposit of an additional $1.5 million by 5:00 p.m. local time, today.
And good luck with that, Senor.
Read all of DISK's press releases, including this most recent one. You can even sign up to receive email notification when they post new stuff.
As you can see by the E-Trade chart above, the market says DISK's merger is doomed. With all the delays and negotiations, nobody believes this merger will really happen. If by some chance it does, remember, that's $2.75 a share coming, in cash, for a $1.18 stock. Me and Corkface decided to take our chances with a few shares.
For one thing, these Nyx guys have put up a million or more of their own money already. And they must have showed DISK's board SOMETHING pretty good about financing last week when they renegotiated. Plus, worst case, we watch our investment fall to 85, 90 cents for a while, but probably not more than a few months. DISK has negotiated with three suitors in the past two years, including Great Britain's Lions Gate.
Image Entertainment owns 3,500 exclusive DVD titles, and 370 exclusive CD titles in domestic release, not to mention 600 programs internationally via sublicense agreements. The Company is headquartered in Chatsworth, California.
WARNING: Remember, if you lose money and sue me, you'll have to tell the judge you took advice from a fictional character.