Post by
Moemoney42 on Apr 18, 2023 11:41am
Quite often
these bought deals are priced at a price reflective of the last 30, 60, 90 days of trading to establish an offer price, seeing as how the share price has risen quite quickly in that 90 day period its not unusual to have the offering price somewhere in the middle of that trend..
As mentioned by another poster the fact that (at this moment) the shares are trading higher than the strike price is a good indicator of value at these levels, and if I had some extra cash laying around I'd be adding anywhere near the ~$8 level.. but that's just how I read this equity raise.. IMO
Comment by
KathyPookey on Apr 18, 2023 1:07pm
What you say is totally correct plus in current market conditions they probably priced it possibly ~ 5% lower than normal to get the deal done fast. Now the KEY thing is, is it a good aquisition they are doing ? One should go read the details of it and the business analysis before freaking out. There's an old saying " Short term pain for Long term gain " CHEERS