GREY:LGVWF - Post by User
Comment by
terroiron Dec 31, 2013 9:02am
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Post# 22047867
RE:RE: vastly underpriced
RE:RE: vastly underpricedTrue enough, the short position represents 8% of the public float as at mid December.
Don't understand though, how a secondary could eliminate the AAV position. The only way for the company to do that is via a share buyback.
AAV could sell on the open market, or to a third party...although the position is larger than 10% which would require thatthat the third party make an opffer to all shareholders.
If a third party bought all of AAV, they would assume the LNV shares, but again they may have to sell in the open market if they wished to divest of them.
So the short could reflect the AAV open market sale possibility, or the dividend cut, or a secondary dilution expectation,