Cardinal Energy Ltd (Alberta) T.CJ

2 possible reasons for a low price

[Storny]

It has been very apparent to investors that CJ is not moving with the price of Oil.
There are 2 possibilities:

1. The Market Maker is really pissed off at the Day Traders taking his money (Me included taking his money) CJ has become very predictable during the morning when he comes in with a big Block Trade of over 50K shares to short the stock. We know the stock will go down so that he can cover later during the session. This has been going on for several weeks. The daily spread has been very minimal to discourage the Day Trader.
2. A possible Buyout...A buyer will hire a financial institutions to keep the stock within a specific range (Possible Manipulation) in order to keep the BUY price low. The average closing price for CJ has been $7.08 during the past 20 trading days. It is normal to have an offer with a Premium of 20% to 30%  of the average Share price, thus $8.50 to $9.20. Buyout.

There is always a possibility the Institutions will have met their objectives and within 2 days bring up the share pice to $7.75 - $7.90 where it should be today based on the Oil price.

If life was only that easy....

TTFN

[masfortuna]

Where did you get that 20-30% premium number? Another poster who likes the sound of his own voice (keyboard).

[Storny]

What is a typical M&A premium? "); display: inline-block; height: 24px; width: 24px; transform: rotateZ(-180deg);">     The premium in a merger or acquisition is defined as the difference between the offer price and the market price of the target before the announcement of the transaction. A substantial body of evidence indicates

[Pottsy]

Good one Storny.....

[masfortuna]

That depends on the M&A in question.  Go look at Pipestone and see what just happened...

[Quintessential1]

Pipestone as of now is an offer and not yet an aquisition.  Like IPL that deal could get sweetened.  I believe IPL's deal was a little closer to a 40% premium by the time the bidding was over and done with. GLTA

[jx7000]

I was an IPL shareholder when Brookfield bought them out. I don't remember getting anything like a 40% premium.

[Quintessential1]

I recall Brookfield paying over $20 per share when their original offer was $16 and the stock was trading around $14 when their first offer came through.  Maybe you are recalling your ACB minus what you received? I could be wrong but it seems in the area of 40% ish GLTY and all