Post by
jamieb3 on Jul 17, 2006 10:20am
Let the downgrades begin
BMO takes the first shot at quantifying the deal.
Rating Market perform Outperform
Price target C$11.00 C$15.75
--BMO Capital Markets said Shiningbank Energy Income
Fund's offer price for Find Energy was below Find's
52-week high of C$13.04. It also said the acquisition price
did not reflect the production growth opportunities the
brokerage saw for Find in 2006-2007.
Comment by
Mexp3 on Jul 17, 2006 1:55pm
Like I said, we got screwed large. Unless there is some info that we are not aware as to why Find let itself go for so cheap. This sucks especially considering we are not even trading at 46.5% of SHN.UN, this is holding me back from selling.
Comment by
rfk67 on Jul 17, 2006 2:12pm
It's not really a true arb since the prices are not fixed. You could for instance buy FE up to the point that it is trading at the exact conversion price but if SHN goes down before the takeout date you'll lose money which is most definitely not an arbitrage.