RE:RE:Mell's BNN interview figures
sorry but you are wrong, you don't take the dillution after the merger into consideration...
Like 17 digger pointed out...
AFTER DEAL:
Total float: 155 million shares
82 million shares for Cobalt one
55 million shares for FCC
18 million shares for CSK... but with the 0,2632 shares of FCC per CSK shares, there should be 22,6 million shares for CSK.
But, what they will do is overvalued Cobalt one and FCC in the final ratio of the new Company...
You have to believe it, it's FCC's CEO that said it yesterday on BNN... So the 0,75$ you are thinking you will get is more like 0,15$... and that's why they keep selling everything they have over 0,15$... because they know that your share of CSK, will be worth 0,15$ once they conclude the deal...
He said yesterday we will have 11% of a 120 million $ market cap company... 13,2$ million... so you think you will get 0,20$... but you won't... Even if FCC trades at 0,75$ when it trades again, it will be an equivalent of 0,60$ at today's price... it's the only explanation why we are trading lower. Would you mortgage your house and buy everything you can if I can guarantee you that you will be able to sell at 0,75$ in 2-3 months, something you can buy for 0,60$ today?? I would... but why aren't they buying? Why are they selling instead?? You need to open your eyes here!
FCC's CEO said it... CSK will be 11%... not 16% to 20% we should depending on how you calculate the market caps..
There is no reason out there... if you buy over 0,15$, you are probably losing money once the deal is all done...