fairfax may get BB for $7 but don't panic
Here is how I think it will happen.
4.7 B = $9 share
FF is now short 1 B, where will it come from?
3.7 B = $7 share approx.
How is this going happen you ask?
I think that Shorts will drive this down to at least $6.
I think FF will rengotiate the offer down to $7 while still offerring a premium of $1.
I think BB will be glad to have this done regardless of the price.
They seem to want to be private so bad it hurts.
The good news, if you got out today like I did you may be able to buy back at $6 in a few weeks.
I will do it just before FF rejigs the offer or before another offer appears. Perfect timing is required.
I think that with a firm offer on the table and the commencment of share tendering the shorts will have no choice but to cover. Those who are short now are most likely too greedy to cover at this time and will keep on shorting. There won't be much time for them to cover cheaply later and no amount of scare mongering will work once there is a firm fixed price. I think my $6 shares will go for around $8 or $9 at that time. Even if the final tender will be for $7. I expect a 50% return at least.
Don't do what I suggest here, because I usually don't know what I am talking about when it comes to Investing, afterall I did buy BB at $65. ouch!!!
Have fun with this, it's only money you know.