RE:RE:RE:RE:RE:With a cool headAlphaseeker1984 wrote: FarmInvestor4 - I think it is highly unlikely that they do not get the required votes. My guess is they have got lock-up agreements in place for Fairfax and perhaps the other institutional shareholders. I also imagine that the buying over the last 3 months has been on behalf of RYAM and someone on their side owns 5-10% of the float which was accumulated in the wind up towards this transaction.
The investigation by the class action firm is unlikely to turn up anything important. They may beat the war drum a little but my guess is they do not get any big fish siding with them. The folks at Fairfax are not dummies. I am certain they shopped around when RYAM came knocking and pressed for the best deal they could get. I would assume the same from the other institutions who along with Fairfax own close to 62% of the float. The fact that the market loves the look of this marriage for the long run does not make it unfair at the time of the announcement. Shareholder perception could have gone the other way and may still (see Moodys placing RYAM's debt under review for possible downgrade). The investment advisers and lawyers have most certainly covered all the bases and the fairness opinions obtained by TMB and RYAM are likely to be pretty conclusive.
My guess is the deal is approved and then we are off on a new adventure with RYAM. I could be wrong but my money is on approval. I have flipped my position into RYAM and will remain for the 2-3 years that SC remains hot.
Once again, thank you for a great informative post!
I am a fundamental guy by nature, but have started learning the technical side of things as well. RYAM has exploded in shareprice over the last 2 days creating a Gap between $14.88 and $15.10.
RSI has crossed line into overbought territory and some other indicators suggest that as well... I am not sure if there won't be a pullback in price at some point to those levels, but $15 will be my target to where I add. I may liquidate half my position of TMB to play a bit, and let the other shares ride through conversion and see.
It's a nice return on investment... So far on TMB shareprice alone, I am currently up 67% from my average ACB.
Thanks again for the info you shared.
FI4