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Coeur Mining, Inc. Message Board

  • drmu05 drmu05 May 7, 2007 6:34 PM Flag

    Something to Ponder

    I hope someone can set me straight on this (i.e. show me where I'm wrong). Here's my warped thinking:

    Holders of CDE should hope that the stock price goes down, not up, until after the public offering.

    Here's why:

    After the merger all shareholders will be of one color, so to speak. Prior to that, we're bitter enemies. Why? Because , in effect, all of us longs are being forced to buy in to the new Corporation at a one for one ratio. The beneficiaries of the new float will also be buying in to the old Corporation, too, of course. The difference is that they pay nothing to do this. In fact, they get a set ratio, plus a smidgeon of cash for sitting on their duffs. So it is in their interest to hope that the old CDE stock goes to the moon in the interim. It is in our interest, as current Longs, to see that we pay as little as possible for the forced merger. In other words, we should hope CDE goes to zero, theoretically, so that our new partners receive nothing for their asset. I know that there are limits on both ends to prevent this, but I'll bet there's a wide field between the two.

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CDE
7.93-0.06(-0.75%)11:58 AMEDT

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