GREY:AVGCF - Post by User
Post by
foghaton Aug 11, 2011 10:14pm
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Post# 18933935
Bought Deal Pricing
Bought Deal PricingI'm not sure why retail investors automatically think that a stock is nominally worth a bought deal price (i.e., $2.07/share) or less. Believe me that when an institution is involved with a bought deal, they have done their homework and the price that they are getting is significantly lower than what they believe the shares are worth. Ask yourself, why would anyone buy a stock for $2.07 when they may only sell it for a few cents more, or less than what they paid? Trust me,the investors involved with this bought deal believe that AVR is worth significantly more that what they are paying.
Just some food for thought.