Allied Nevada Gold Corp ANV

How To Value The Recent Public Offering

[goldguy007]

I am not sure if this is correct.

If you had bought the recent offering at $1.00 and received  0.5 warrant at $1.10 you would have 1.5 shares at an effective price of $1.05.

If we divide 1.05 by 1.5 we have an average share price of $0.70.

This is close to the current price of $0.74.

So essentially the current price is close to the deal that we would have gotten at the offering and we don't have to deal with exercising warrants if they are ever in the money.

So the market has adjusted the SP to factor in the public placement and those of us who missed it can buy at basically the same price.

If someone else has a better way of valuing this please post it.

goldguy

[Understandmyfea]

i got 1.033  1 share worth $1,and half warrant worth $1.1/2=0.55 total 1 secondery offer share offer value $1.55 and = 1.5 shares so 1.55/1.5=1.033

[goldguy007]

OK, thanks. So if they paid $1.03 for 1.5 shares (if the warrants go into the money) that package has an average cost of $1.03/1.5= 0.69 per share. That is slightly better than the current price of $0.74. However, if the SP does not go above $1.10, they will be in at $1.00 per share and big losers. In that context, I think it is better to have missed the special offering and buy at current

[Understandmyfea]

i dont know how you get $0.69 i already divd 1.5 i mean if they dont want use warrants,1 share only cost them $1 if they want assess warrant to share,they total cost for 1.5 share is $1+$0.55=$1.55 then you divd 1.5 shares and the result is $1.03 i do no account future value.and interest. now they pay for $1 for 1 share,and 1.03 for 1 share plus 0.5 warrant

[Understandmyfea]

And if investors reverse thinking this is not secondery offer,it is acquired company's offer at $1.03 at closing day dec12 2014 could you buy $0.85 per share at market? i will. but this is not Acquired company's offer,it is same management control the company,share price still has risk.but i think my avaerage risk is still lower than the management who got this share at $10

[Electrum.jk]

Very logical..

[greyman1]

what r u talking about ??? u dont get the 1/2 share for free u pay for it ...your cost is $1.55 for 1 1/2 shares or $1.03 per share....and the stock's market cap got dilluted by 25% so buying in the open market at break even after all is said and done ????? is .75 canadian if thats what it got priced in

[Understandmyfea]

I think cfa and accountants already acount market cap dilluted 25% in to the $ 1.03 new offer.

[oldblinker]

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