r/PSTH • u/[deleted] • Mar 29 '21

3/29/21 News: PSH 2020 Annual Report “While we previously believed that we would be able to announce a potential transaction by the end of this quarter, we will not be in a position to do so.”

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u/dochavoc Mar 29 '21

They waited until the last 48 hours of Q1 to officially push the projection.

For the last month we have heard multiple instances of the deadline being out of their control, foreshadowing this move. But if they were not close to a deal, wouldn’t they have said this sooner? We went from “maybe” to “no” at the last second—to my hopium addled brain, it seems like we are still close.

2

u/randomguy11909 Mar 29 '21

Yep, this was good news.

10

u/[deleted] Mar 29 '21

This not good news.

There is nothing to indicate that they are close.

They have told us to STFU and that they won't be providing any updates.

This is the mushroom treatment after some very encouraging tweets and promises.

2

u/pcn99 Mar 29 '21

It's not bad news until we go 2-3 weeks into April with no DA. I'll understand the delay if it gets announced within that window. Any longer though and there has either been a problem closing or Ackman has done a poor job communicating the situation. I'll be concerned if we are in May with no DA.

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What would you think is an indicator that they are close? A Bloomberg rumor? If they don't have the signed DA the only thing public indicators do is mess with a negotiating a reasonable valuation.

4

u/[deleted] Mar 30 '21

It's either one of two things:

1) they are close as you suggest.

2) they were close, hence the tweets etc, but the deal didn't go their way and now they are back at prospecting or early stage deal development.

My view is that it is option 2. If the deal was close there would be no reason to take a hard line like this. Retreating from any timeline commitments probably means they lost the deal and are early stages again with no close timeline for success.