RE: Effect of Spin-off....Yes, CAN s/p price should adjust itself downward POST spinoff by whatever value the market attributes to Tigray. No, these shares are not "free" like some here seem to suggest and the ratio itself is meaningless. The new co in this case will have 40-50M s/o trading at $X with a market cap of $Y. If you were to get more/less shares the price $X would adjust itself up/down accordingly, but the market cap $Y would be the same. I guess the thinking here is that the sum of the parts is greater than the whole, but that remains to be seen. If the assets to be transferred to Tigray are so valuable, CAN current s/p would reflect this at least in part already. Co's do these deals all the time. Sometimes with great success, sometimes simply for the sake of generating some news and nothing more. The Tigray deal looks to be very early stage at this point, so how much can it really be worth in relation to CAN's other assets? Anyone care to take a guess?
Anyhow, why you are talking about a fair value of $6 and settling "down" to $5 at this point in time?