OTCPK:BIBLF - Post by User
Comment by
zooweemamaon Dec 17, 2022 7:21pm
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Post# 35178043
RE:A question regarding share purchases
RE:A question regarding share purchasesThe time value of money.
The deal is closing at Q1 2023 and we assume it is late Q1 so I assume April. It is trading at a discount of 5 cents or around 1.25%. Right now, the prime rate is 4.25% and if I put money in a saving account until April, I expect a return of around 1.06%,
Let say I have money to invest now, I can buy WBR which is likley to cashout for a payout in April. (No guarantee as it is subject to a vote, regulatory approve, change of heart etc.) for a 1.25% or put it in the bank for and gurantee return of 1.06%. The market risk is only the diffrence of the two percentage (0.19%) which is small.