RE:RE:RE:Anyone think the market has repriced PLI's value GoBBs wrote: thats not what I'm asking ...what I'm wondering is has the market respriced this up already. Theres 20B shares now ...and its not trading at .0147 294m/20b ......its trading 4x that so wondering why.
GoBBs, I think that buys now at 6-7 cents are 1. are day traders
(see examples here on stocktwits pli forum posts) 2. retailers who don't have a prior position, and are buying now for the rights-offer.
Here is the math, if interested.
their cost average after the rights
in the case of x6.7,
$0.022=($0.07+$0.01521x6.7)/(1+6.7) shares
or in the case of x20,
$0.018=($0.07+$0.01521x20)/(1+20) shares
Without any prior position, their average cost after the rights is low, which for some people are worth the risk for the potential upside.
It will
only become clear, imo, what the market values PLI at
AFTER the annoucement of the Record date in May.
My guess is that it will go
lower than the current 6-7 cents, but how close to the transaction price of 1.521 cents, nobody knows.
If sp stays
higher than 1.521 cents after the annoucement of the record day, then it is clear that the rights offer is the more advantageous way (i.e. a better price) to average down, for those who decide to do so than buy at the market.