1) Each stock get a CVR at the closing of the deal. Thy can hold on to it, or trade it, and that's why the CVRs trade separately. I don't know what the value is. How much commission overhead cost is subtracted before the Chicago spectrum sale. My other unknow is , why would AT&T want to sell the Chicago Spectrum when they buy LEAP for the access to Spectrum. If they decide not to sell the chicago spectrum, then what happes to the CVR? CVR normally have a life span and expiration date. Selling asset is part of the CVR, which is the case here.
2) There are different types of money. People who want to move the money and work on something else may sell and move on. But there is supply/demand. 10 or 11% gain is a lot. So other low risk money will move in and hold until the deal closes. I think this will still trade above $17 on Monday. You are thinking everyone will sell for the $15 price and the new money will be waiting at $15. That won't be the case. It would be the case, if not for the CVR.
3) I am one of those stupids shorted heavily for a quick money on Friday AH. I couldn't and didn't want to close my position thinking the stock was trading above $17 due to heavy short covering. I didn't understand the CVR very well initially. I want to safely exit on Monday morning, obviously for 10k+ loss. I have shorted 14k shares at an average price of 16.19. I hope this wont trade above $17.30 at 9.30 am on Monday, If not it will run to $19 easily.
4) I admit I made a stupid bet, and wrong and misinformed. I wanted to trade quickly and make quick money. Only thing struck on my mind was $15 sale price, and this stock trading above $16 in the AH.
5) I am still puzzled and surprised that none of the reputed news organization have clearly explained why this stock closed at $17.31. I wish they did around 6 or 6.30 pm yesterday to stop the new stupid shorts like me.
6) My bad luck this will start trading at $18 in the PM on Monday.
I would not cover s#_t premarket unless it goes under 16.5 This things goes 18 I am shorting more it hits 19 or higher I am throwing the sink at it. I am expecting a 16.5 to 17 closing price worse case scenario. Dish will not touch it at this price and Uncle Carl is too busy trying to swallow a poison called DELL so no rivaling beat for the future. This is my honest opinion but you do what you want....GL I hope I am not alone by saying this but tapering is coming. Bernanke's last speech and statement was nothing more than proving to him self and others that QE has created a MONSTER. The tapering is coming and it is coming fast. The market can take a 20% hit now or a 50% or worse later. Which one do you think they are going to pick? Since Friday I have liquidated all positions and ready to short. The funds know this look at all the manipulation with the refiners in the last 2 trading days look at the spread between WTI and Brent and somehow they keep going up. I feel sorry for the newbies they are going to get crashed. Every time I see the market going up I laugh with JOY just more money to be made on the way down. Get ready to short not just yet.. Tic ... Tic.....tic .. ti.........