Lower Stock PricePeople can correct me if I am wrong, but there is a good reason why BVG is down. This reason is in addition to the general market decline.
The company intends to spin off Bravada. The shares of Bravada will be spun off to shareholders of record on December 31, 2009, if the shareholders approve it at the upcoming AGM. I think this means that anyone buying BVG at full price today is in for a fall because once the Bravada shares are spun off, the value of BVG should drop by the value of the assets spun off to shareholders.
If you were a shareholder of BVG on December 31, 2009, you don't have a problem, because you will get Bravada shares. If you purchased after, I think this means that you are out of luck, the Bravada shares will be spun off, but you won't be getting any.
Can anyone confirm my thinking on this?
Crash