RE:Whats the better BUY...Sgnl or NexG SgtFriday - (10/21/2024 2:51:04 PM)
Whats the better BUY...Sgnl or NexG
At the end of the week I get a bonus, so I ask all (pumpers and dumpers, you too shitfty). What is the best bang for my buck, if I have $10,000 to invest...Sgnl or NexG? assuming merger goes through
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I think you spelled my name wrong. Are you sure that second "t" should not be an "l". jk....
Assuming the merger goes through. I assume that it will as well. I don't think SGNL holders have any option but to vote for it. NEXG I feel is getting the better of a deal, has all the support from management for the financing. And Frank Giustra as a backer who supports it. The president of NEXG has stated that they would not have announced it if they werern't already fully subscrived or oversubscribe already..
Debating whether to vote for it for SGNL holders is in my mind a no brainer. If it doesn't go through, it is my opinion that SGNL shareholders are in a bit of trouble.
So assuming it goes through (which is not guaranteed... there is the vote and then companies both raising the funds, and getting a deal actually signed with Naraobi)
The numbers can change a little bit....re the 29% vs 71%. If one company raised the funds and the over allotment, and the other only raises the funds required without the over allotment.. the numbers could change slightly. Those numbers were approximate and prior to the concurrent placements being completed.
But the conversion rate of .1244 is basically 1 share of the new NEXG for every 8 shares of SGNL held.
So if you get SGNL shares for .085... multiply that by 8, you are paying about .68 for a share of NEXG. Which is about a 15% discount to buying the NEXG shares at the market. That appears to be the better buy today. The SGNL shares.
The best bet if you could get in would be to participate in the NEXG financing, which are flow through with flow through warrants. But I expect that might be tough to get in on.
Next best, participate in the SGNL financing at .087 with the warrants if you would have to pay .085 for SGNL. If you get them for .08, it's pretty much a wash in my mind because you pay less but don't get the warrants. I expect the warrants wil be in the money at some time.
3rd, buy SGNL on the market, but don't bid .09 unless trading changes before the end of the week.
4th... buy the nexg shares on the market.
But obviously some others see things different than I do. NEXG did $723 000 of trades today. SGNL did $235 000. Are more people more comfortable with NEXG so paying a premium?
The selling on either side could be holders selling to participate in the financings. It would make sense if you knew you could get in.
The trading on SGNL the last couple of weeks. Morgan Stanley has been by far the dominant seller at close to 5million shares. TD is by far the dominant buyer. At buying almost $5 million shares. This could be prearranged. It could be one seller who wants out. Or it could be that Morgan is selling so that they can get the tax loss break. And are buying from themselves through a different account/name etc. That way they would get the tax break. To do that with the same account they would lose the tax break if they bought back within 30 days. It could have to do with the date of the pp closing... because they need 30 days.
A lot of unknowns.
I do think that there is very little merit to discussing the properties, who had what assets, who gave up what, who got the better deal. The deal is signed so the rest is irrelevant at this point.
If a poster isn't certain whether they should vote for or against it at this point... well they perhaps are not looking at reality. It is a no-brainer.
I'd go with the SGNL shares if I were you. Missed the .08 on the market possibly, so perhaps have to pay .085?
Morgan sold about 5 million shares and bought none the last couple of weeks. Are they done is the question, or do they have 5 million more. They have shown that they are more than willing to sell at .08 as they unload.
Goodluck