<<UBid has market cap of 325m based on
Friday's close.
MALL owns 80% of UBID.
MALL's maket
cap is 220m based on Friday's close.
MALL
current market cap =
MALL market cap before UBID's
IPO
+ UBID market cap x 0.8
Right now MALL has
less market cap than UBID.
The number doesn't seem
right to me.
Could anyone give me teh reason?
Thanks. >>
What is everyones damage here?
I'm sorry to be so crude but I just don't see what
the problem is with the math.
CCI doesn't own
anything! Those shares are to be distributed to MALL
shareholders and CCI isn't any richer for holding them now.
You may as well say CCI is holding them in trust.
They are not theirs to do with what they please. UBID
shares are not an asset to CCI they are a future asset
for MALL shareholders. MALL is not going to track
UBID at .80 * UBID + 10 (for MALL). Anyone with brains
would not buy MALL if that were the case. Why buy at
that rate? You would gain nothing on distribution.
MALL would fall like a rock on that date and you'd be
at even money. MALL will fall closer to its true
valuation every day and will crash to that number the day
after the distribution date is announced. Chances are
very good that the record date has already passed so
buying MALL now will not assure UBID shares.
If
you own a house that you are under contract to give
away in 6 months you certainly can't use the value of
that to secure a loan based on your net worth if the
bank knows you won't have the house in 6 months. Hence
the falling price of MALL...duh...