Great piece by Nate over at Oddball Stocks detailing the recent events at First Aviation(FAVS). Basically, management is forcing outside shareholders to sell out at an arbitrary price below intrinsic value, without a shareholder vote. As a holder, I am disappointed, but like Nate, my basis is not too far above the buyout price. It’s a relatively cheap reminder of a way in which you can be right about a company’s performance, and still be wrong about the investment.
Disclosure: The author holds shares in FAVS for a few more hours until the company pries them out of his hands and pays him below value for them.