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Case #29: Poetic
Justice
by Rick Munarriz (MF Edible) |
"Thirteen steps I have to climb,"
He said, he stalled, he fell behind.
A date to keep with Ignorance,
Enchantress of the decadence,
That fills the mind with eventual resentment,
Swallow the pill of sleepy contentment,
Still success by chance remote,
Brought cash and hence cold calls to tout,
A new deal ablaze, a juiced IPO,
Poets Anonymous <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RYMZ)") else Response.Write("(Nasdaq: RYMZ)") end if %> out of Idaho.
Red herring was fishy, something was smelly,
Greasy thumbprints all over from Pork
Belly.
"Buy" Belly said, "Buy, this one is hot."
Initial reply was, "I'd rather not."
Belly persisted, that young company
Is pumping out jingles as quick as can be.
"If they are so good, then what need to go public?"
"If you wanna start fire better learn to go rub sticks."
"That's not an answer, now Belly, the truth?"
He smiled and he said, they sold one in Duluth.
Yes sales were pathetic, and what was intriguing,
Was half the shares offered were insiders leaving.
Yes, it was true, three of six million offered
Were being sold by directors and officers' mothers.
Still, if you thought that's as bad as it gets,
The company was saddled neck-high with debts.
"Whoah there," saidw marked down to ten,
A bargain for you, $60 million for them."
Closing the pitch with dreams of submission,
He said, "Most of all, look, ma, no commission."
Hark!
A Spark!
A Fool fades in from Dark!
Sir Motley Fool could bear no more,
He entered stage left, Belly fell to the floor.
"Analysis is never as simple as this,
But while we are at it a few things you missed. . . "
Motley first pointed out that of the $10 price,
Was a $.50 commission to Belly, how nice.
"So while you may think Poets Inc will be nifty,
Please mark the proceeds down to nine dollars fifty."
Belly was shaking, sticky fingers were trembling,
But Motley was ready for a final point pending.
"Still even that is just half of the story. . ."
"Stop," Belly shouted. "I was wrong, just ignore me!"
As Motley readied for one more rebuke,
Belly slithered out, slithered, yes, as he shook.
It seems with the present terms outstanding,
Poets Anonymous proceeds would be only commanding:
1) $28.5 million, modest ransom indeed
2) $30 million, and sorely in need
3) $57 million, and all just in time
4) $60 million, to fill hearts with rhyme
Bust-a-Belly! Mission Done!
Hope You Answered Number One.
While six million shares went up for sale
Half came from insiders wanting to bail
That leaves three million from the company please
Sum of $28.5 million after underwriting fees
The bright side to this if there's any such branding
Is just three million shares added to shares outstanding
Motley winded his feet and said, "Exit Stage Right"
And a much smarter Fool dropped the curtain tonight.
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