Alpha Minerals Inc ESOFD

FCU - $1.12 x $5.725 shares = $6.41 Am I missing something?

[Ingie18]

In addition shareholders get spinco - Alpha management will be strategizing on spinco including new joint venture opportunities - I continue to add both FCU and amw - believe FCU will be $1.25 to $1.35 in November when deal completes - might rebalance FCU shares into both new spinco's - this is easy $$$ Not without risk do your own dd - let me know if I am out 2 lunch

[Bigwinner101]

For each share in AMW the AMW holders will get 5.725 shares of Fission .

[letsgetready]

Bigwinner, you are missing the spincos..FCU spinco is worth 10 cents and built into the $1.12 price..exclude it and FCU's sahres of PLS is worth $1.02. so x 5.725 + AMW spinco value (20 cents) = value of AMW today..that works out to be $6.03 close to the market price.

[Tarquin4]

How do you know the FCU spinco is worth .10? Doesn't the market decide?

[letsgetready]

Tarquin, it does. thats my estimate only. Things are looking good for FCU spinco's properties so this might be understated.

[Tarquin4]

Until the merger is completed neither company will release much of anything about their respective spincos. But I'm sure both will be worth far more than .10 in the near future

[bridgetonowhere]

@letsgetready - It's far from certain that the spinco's are currently valued into their "parent" companies.  In fact, most observers believe that the market has applied  little to no value to AMW and FCU's "other" assets and that the spin-offs will create wealth for shareholders.  If the arguement you present is accurate, that also mean that PLS's

[letsgetready]

The pros will be valuing the spinco properties so they can get a better angle on the values of FCU and AMW right now. the formula is AMW SP =  5.725 X  (FCU SP - FCU Spinco SP) + AMW spinco SP. This formula is an undisputed fact. What is unknown is the value of FCU Spinco SP and AMW spinco SP. Thats where judgement, opinions, estimates and guesstimates come in. If one values these at