What? Gimme a break, its based on CURRENT prices in the market + a premium. Assuming $12 then a 75% premium takes this to $21 which is all you can expect at these levels...
That's why when companies that have hood technology that are run by poor managers get taken out near the lows...
I am bullish on STEC but have lost $ 3 of the 4 times I have traded this.