A serious question - offer is $48.60 - market says otherwise
Disclosure:
I am long WEED, and love the company.
A serious question so only serious somewhat educated replies....
If the deal is at $48.60, that is what CB was willing to pay in an arm's length transaction, then why did it open at $42, and the day's trading range is between $39.43 and $43.37 currently?
The only other buyout of a stock that I held that I can remember was when the Chinese company wanted to buy out ARE - Aecon Group.
Pretty much after the deal was announced the market price was reflected at the price the Chinese company was willing to pay, and it stock around that price for quite some time, fluctuating immaterially from it on a daily basis. Since the divy on that stock wasn't stellar, and I figured I wasn't going to make any more money on it than the Chinese company's offer price, I sold it, and it turned out to be a good deal, because the Canadian govt squashed the deal.
I actually bought in again after the deal was squashed and have done well on it.
But, its been kinda making me wonder all morning, why the price isn't around $48.60 on WEED. I realize that the deal is not being made by acquiring shares on the open market...
However, it makes me wonder, that the market seems skeptical of the deal?
Any intelligent insight would be welcomed, stupid comments from shorters will be ignored...
Must have been quite a turn for the shorters this morning when they woke up..... was the opposite feeling for us longs today.
GLTA Longs on WEED