6 more trading days to go and the average Sprint stock price is sitting @ $3.23
If I was a VM Shareholder right now - I would vote NO DEAL!!
Sprint better start buying their shares up or NO DEAL!!
Lets see how bad Sprint really wants VM. Lets see if the stock price climbs higher in the next 6 trading days - to make all the VM shareholders happy and change their mind to vote yes.
If we don't see this - you can kiss this deal good-bye.....
I like your logic of Sprint buying its shares back cheap ready for the exchange as part of the VM deal.
Now VM may reject the deal if it fails the economic test, but even if Sprint ends up having to improve their offer, it still might mean they buy VM for less than if the share price of both companies was high.
It would be ironic indeed if Sprint was behind the apparent trading anomolies that many of us suspect. I take solice from some of the massive stock buys that fund holders are making. Misery loves company. :-)
Well, if I understand English that is what some seem to suggest.
The most important thing that I try to get across is that low share price is a death knell.
A company tries its best in every way possible to keep up the share price.
If Dan Hesse has a major failing it's the complete inability to promote the share of this company.
You guys have to understand that the shares are not for decoration, they are how a company raises its capital to do business along with the sales of debt instruments.
An inability to raise capital in the capital market, seen in either low share prices or high interests in debt obligation is a serious warning sign.
This is nothing to be trifled with.
In brief, short term low share price is an opportunity, prolonged low share price is a warning.
Tarn, nobody suggested S is behind pushing down its own share price ... but this is more than obvious what this price war is all about - exchange ration and at most favorable for the main holders terms - means lowest possible share price level, besides new shares issue is dilutive (but apparently book value accretive)
A company always has shares issued and held in reserve for the purposes of employee awards and such.
To acquire another company with stock, they usually issue new shares.
The damage from low stock price is far reaching.
A company would never try to push down its own share price especially this low.
go figure .... agree again, but do you know how much of the oustanding shares is in the hands of S, where are they going to get the needed shares from? New issue? They may have been buying on the open market (?) in this case it would've been stupid to buy them high ain't it? Spending valuable cash to drive the price up would've been even more stupid shorts would've just killed them .... so since both S and VM are 90% in the hands of institutionals and their MMs the game is rigged .. they sold S or shorted it and will keep both stocks low will get 1.3 times of S after exchange and cover + options .. S does not react to any good news, there is a barrage of negative press and relentless bashing .. I suspect that after the exchange the tone will miraculously change at least short term for the W/S gang to make money on the upside ..
this latest action suprised me today.and i cannot think that this is management...
it has to be shareholders ie institution wanting more control......
were you around in may to know how it came about????
who initiated this new clause will give us an idea what the purpose was..and for who....
when x calls meeting and tries to get the company.....
10%to call a shareholder meeting is a nightmare to management........just wait till they pull the trigger.....51% and we all go for the ride......
i say they are going to dismantle sprint in january and sell it all off in manageable chunks
phones, spectrum, ect...
cut it up in little pieces
thats why the lawsuits are all settled...
I did see the VM chart for their whole life span. Thanks for pointing out. To have $.60 go to $5 in Apr-May basicly follow Sprint share price rise and fall exactly the same manner shows around April'09 or before the Merger was already discussed and agreed upon. Just look at the chart of Sprint and VM starting from April'09
"I just don't see how they made or will make money..."
Wallstreet wiseguys always had to comeup with a harder way to make money. Simply buy Sprint low and sell high was too simple for them, so they involved options, and VM saga back and forth, tangal the buy VM, short Sprint, do a 20% up a day, only to bring it down etc......What I am trying to say is, wiseguys' plan is, at the end they will make it in the volume. Add, minuse profit/loss from option, buy, short of VM/Sprint, when everything settles wiseguy is hopping to see profit extracted.
They went so big as to get S&P involved, don't forget the countless article writers.
I am sure it will be enaugh to pay for some Budwiser and the stripper. 'I am from New York, I am wiseguy' thats their mentality.
I lived in NYC, Manhattan too for 8 years, I have seen it everyday, everyone is suffering there, all clueless.
Isn't it whichever party backs out has to pay a breakup fee?
If Sprint backsout Sprint has to pay the fee, if VM backsout VM pays the fee to Sprint at this point. Isn't there a clause in this merger deal too?
Whatever it is, $4 VM per share is more than fair. Remember VM was trading at $1 or below, 300% gain. Iam afraid, if this deal doesn't go through, VM will see $2 to $3 and Sprint will jump to around $5.
In any case, institutions and insiders own about 90% of VM, so, rest assured, this merger is prearranged.