SSW tendered 20% of its outstanding shares on 12/23/11. Expiration date was 1/11/2012.
SSW was trading at $10.45 and tender offered $15. This was a huge win. The day after tender, the price jumped to $12. The price kept claiming as tender days passed and eventually, it was traded above $14 a few days before expiration date. About 38% of outstanding shares were tendered by investors and the company matched 54% of each investor shares at $15. One day after tender expiration, the price dropped to around mid $13 but later it went up passing $15 and $16 per shares in a few weeks.
Well, SSW removed only 20% of outstanding shares and that squeezed shorts and demand for shares become much higher than disposition.
IN SVU case, 30% of float will be out of reach of investors for at least 2 years. This action first squeeze shorts and then demand for shares will go much higher in following weeks and price will be over $4 after the tender expiration date.
what was SSW's float and short % then? Supervalu has short % 40%+ This week's trading action tells me this stock will be much higher than $4 within the year. I still don't understand why some big hedge fund doesn't just buy 50 million shares and force shorts to cover. That hedge fun would double their money in half a year.