Post by
Duxing on Jan 20, 2018 8:48am
3:1 pure stock exchange deal, both side feels comfortable
CMED will not accept any cap this time. It will be a pure 3:1 stock to stock exchange.
This is reasonable because at the time ACB announced the takeover, CMED share price was 15.3 and ACB was slightly over 5. 3:1 is a ratio both sides may accept psychologically and comfortably.
Comment by
Duxing on Jan 20, 2018 8:51am
With this deal, ACB may surge 10 to 20% to 15 to 16 range. Therefore CMED worth 45 to 50 dollars
Comment by
Duxing on Jan 20, 2018 10:05am
If you really read into the deal, you would know 3:1 was the price ratio on the November date the deal was announced. ACB put a 57% premium and ended up with ratio 4.525.
Comment by
Duxing on Jan 20, 2018 10:28am
You are so funny and serious! Nobody here can represent any others. This a forum and we are only express our own opinions and guessing.
Comment by
Duxing on Jan 20, 2018 10:13am
By Taking the 57% premium off, both side would be comfortable. ACB has spent huge amount of money and time. It has determined to win the deal and does not want to lose the opportunity. I set my price target of CMED at 35 to 40 based on my prediction and jumped on CMED train last Wednesday morning at 26 bulks. Now have made over 30% gain. Some of the gain is already in my pocket.