How dilutive is the purchase of Perigrine? Since Perigrine doesn't have earnings, it would seem EPS will be downgraded.
In the long run, purchase may make economic sense. However, it seem large premium makes management decision suspect. It is the most likely reason for sharp drop in pps.
yes, but they have fallen 20% and also rememeber they upped guidance by 10%. Overdone in my opinion. also with the FED talking QE3 again, they dollar is going to tank and commodity prices are going to continue to rise. They might have overpaid nearterm, but in the end I believe this is a good entry point.
It seems Perigrine has 148.4 shares, based on $487 mil buyout at $3.28.
Perigrine shareholders will receive 0.08136 SWC shares per Per shrs. It works out to 12 mil new shares.
SWC now has 103 mil shr outstanding. Thus, extra 12 mil shares from base 103 represents 11.6% dilution.
Am I right?
Likely a nice kick back coming to the CEO and chief financial officer for this purchase. Oh that's only my speculation, not based on any facts. Seems really odd to pay 3x what the company is trading for.