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ProShares Short SmallCap600 T.SBB


Primary Symbol: SBB

The investment seeks daily investment results that correspond to the inverse (-1x) of the daily performance of the S&P SmallCap 600 Index. The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the funds investment objective. The index is a measure of small-cap company U.S. stock market performance. It is a float-adjusted, market capitalization-weighted index of 600 U.S. operating companies selected through a process that factors in criteria such as liquidity, price, market capitalization, financial viability and public float. The fund is non-diversified.


ARCA:SBB - Post by User

Post by AlwaysLong683on Apr 03, 2023 11:34am
288 Views
Post# 35376252

Would Be Interesting.....

Would Be Interesting..........to watch the fallout if those in here craving a "No" vote actually had their wish come true.

If a "No" vote actually came to fruition, the BTO deal was dead, and it was business as usual for SBB as an independent company, here's what I predict would happen:

1) SBB's share price would almost certainly drop by double-digits when trading resumed post-vote and eventually make its way down to around the 1.60 - 1.70 mark barring a huge run-up of all gold stocks, but of course this rise would have nothing to do with owning SBB shares in particular in a "rising tide lifts all boats" scenario, though I bet SBB rises less than most other small or micro cap gold stocks should this scenario transpire.

2) Market will be closely watching whether or not SBB can in fact:
a) stick to the timeline they've outlined for the stages of progress up to and including first pour.
b) require any additional financing along the way.
Either of which would cause another drop to whatever the share price is at that time.

However, I believe a "Yes" vote is almost certain, so people in here will be able to continue to whine about what a bad deal this is/was after the votes are counted, the deal closes, and SBB shares are converted into BTO shares, all the while not realizing that they dodged a bullett they were desperately trying to stand in front of.

I'm not saying that management and/or the BOD won't richly benefit from this deal in a manner the average shareholder won't. I'm saying that, from my perspective, accepting the BTO offer is the better move for shareholders, and that is why I believe the largest shareholders with the most total dollars to gain or lose in this BTO takeover proposal will vote in favour of this deal and the final tally won't  be close (my prediction: a "Yes" vote of at least 80%, likely higher).



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