Samurai Capital Corp V.SMU.UN

RE:RE:Still stuck at $22.50!

[CanSiamCyp]

Geric:

Thanks for your share!

However, you might want to rethink your math. The SMU press release stated that the deal would close during Q1 of 2023. So today is 8 Nov ... let us speculate that the deal closes on 8 Mar ... that is 4 months. So someone buying today at $22.50 would earn 4.4% Capital Gain in 4 months (approx. 13.2% on an annualized basis). Compare that to a 1 year GIC earning 5% Interest (i.e., much more highly taxed by Team Turdo). So comparing 13.2% CG vs. 5% Interest .... something just does not make sense here.

My experience with other takeovers ... REITs and also in other sectors ... is that the unit price tends to shoot up to within a 5 to 10 cent range below the take-out offer. This allows some high volume arbitrage brokers to make money on small price discrepancies on a high volume of buying (just like grocery stores aim for high volume at low markup margins ... or so we are told).

It is doubtful that we will see much in the way of analyst reports on this transaction cuz TD and BMO are financial advisers to the two parties to the deal ... so they will be blacked out until the deal closes.

Cheers!

geric wrote: I have a feeling it will not move much higher from this range.  The 4+% to hold to closing of the deal minus the suspension of the distribution is likely a factor.  Better return on a GIC maybe.  Just my thoughts.