No. What is going on is Wall Street at its best when it comes to manipulation. classic example of arbitrauge and the wolves that do that type of thing. This is an all cash deal that might even get better. The Big Boys know that the little investor out there wants to sell but wants to wait to get closer to the buy out price. However, the market is moving so they just short a few shares now and then to drive the bid down to where the little guys has his stop losses and guess who is there to buy them? 7 to 8 bucks a share on 3 or 4 million shares is a ton of money for a sure thing. And if your borrowing the $'s at 5% it is even better. Watch and see....one day we will wake up and the stock will be 64 to 65....that means they got what they wanted.
You are absolutely correct. The holders of this security will receive a minimum of $67 within approximately one year - possibly 10 to 20% more. The small retail guy is being frightened out of his shares. It is that simple. If the deal does not go through - a very low possibility - the stock will be selling above $100 within five years.
Fin, I have been long in PENN since 1993 and I'm still holding for the payout. I also despise the market makers, and financial houses that manipulate stocks. HOWEVER, the volume of late has been extremely low, so I'm not sure that institutional shorting would account for the declines. See my response to the HET comments. I hope I'm wrong, but I do follow my hunches and I bought some JAN08 55 puts for safety. I figure by then we'll have a better feel. Luck to all.