KGIC Inc LGLTF

If this was a sweeheart deal..

[AuntiePenny]

..and mgmnt deliberately let if fall to .37 in order to insure exchange approval of .40 deal there wouldn't be so many agents in on the PP. Let's hope mgmnt was willing to compromise because they need immediate cash to exploit some opportunity. Otherwise it's a little strange. I would have thought .45 would be a more proper PP point.

[britishcinnamon]

No, that's not how it works. Just like for an IPO, bankers always get shares at a discount. Do you think that underwriters should also pay $85/share for BABA? Why would anyone buy at a premium if they did not have to? I don't want to pay $15 for a whole chicken if I can pay $7 for the same bird.

[AuntiePenny]

True - a discount - but from the current/recent market price which at the time this deal was being contemplated was .52. That's why I say .45 would have been a more proper point. The way the initial announcement was worded virtually guaranteed a price decline. Now with a .37 price recently set the .40 deal looks like a lock with the authorities. I don't want to come across as a basher. I

[ROIcrusader]

Let's be clear, other than operating the business, management generally has little impact on the day to day market fluctuations of a stock. The cannot 'depress the price' at will. The investment houses, now, they are a group that can 'stop buying' and let the price of shares fall. Long term shareholder, am long, no reason to exit. GLTA

[AuntiePenny]

Management needn't buy or sell to influence the market. Other than just conducting business well or poorly they influence the market through news releases. In any case I doubt that this deal will have any long-term deleterious effect on the market price for LOY which appears to be a stock with a future.