FIS/DML I saw Bridge’s math formula on the FIS BB and wondered how one would think it compares to the prices of these two stocks on Jan 15th exactly one day before the deal's announcement?
At the time DML was 1.45 and FIS was .56.
Since the deal was announced, FIS picked up 36 million in value based on today's close of .84. I'm not going to do a calculation of the DML side because at .355 a share, and at a difference of .26 a share between $1.45 Jan 15th and the $1.19 close today that calculation is more or less meaningless. But FIS shareholders are ultimately better off today than they were Jan15th despite the fact that DML’s price has sagged.
But if there had been no deal, I ask you what you think this stock would have been selling for without the press it got from the DML "plug"?? Sure there are some nice drill results, but in this "funk" the sector is in, drill results by themselves "do not a mine make"! But having PLS as a pure play sure helps! DML's press got Dev's show a booking at Carnegie Hall! ---And why shouldn’t there be plenty more gains in FIS even after the deal goes through?
But seeing FIS stock retrace from 1.26 one wonders just how many warrants were exercised and sold above the 1.15 level or do you think that is an issue? Could the company flog its own shares from their treasury into that 1.26 rally? It is an interesting phenomenon indeed to see those shares retrace back to .84. I suppose it could be the result of flow through shares being redeemed immediately that option was available to those shareholders who would be selling them strictly for tax loss advantages as soon as those privileges could be enacted upon,- and for a nice tidy profit too!! Could somebody have shorted the stock in the 1.20 area? If any of these factors contributed to Fissions stock retracement, please don’t blame the DML deal for it!