GREY:SXRZF - Post by User
Post by
taleb186on Jul 22, 2010 12:59pm
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Post# 17288813
SP after exchange of common shares
SP after exchange of common shareshas anyone done the math here to determine the SP of uuu after ARMZ gets the new common stock issued to them. Now this math is done assuming that the market value of UUU to still have a valuation of 1.67 BILLION.
1.67 Billion = 2.84$ x 587.49 million common shares outstanding today.
-Today ARMZ owns 23.1% of the common shares == 135.6 million common shares
-the rest of us own 76.9 % of the common shares == 451.4 million common shares.
-After the deal is done and approved ARMZ will have an extra 356 million common shares + 135.6 million shares
already giving them a total of 491.6 million shares.
-The total new common shares will be 491.6 million + 451.4 million == 943 million comon shares.
-And with the current market value of 1.67 billion holding, the day after the transaction you can expect to see a UUU sp of 1.67$billion/943 million shares === 1.77$
So the QUESTION is where does this 1.06$ dividend per share come from? well taking the price that the stock has been holding steady for the past 12 or 13 trading days. you can see it is $2.84-$1.06 = $1.77
Anyone care to comment? I wouldnt really worry if you bought this thing at anything less than lets say 2.40$/share but right now there doesnt seem any incentive to buy in.