The drop in stock price has increased the odds of buyout and given me opportunity to add to my position
Schulze was\is very aware of the situation at the company which is why he proposed to take private so all the chatter from shorts about the companies financial position making buyout less likely is false. Schulze owns a 20% stake so he actually has his own money on the line here and all the more reason to want the company to succeed.
Drop in price was just what was needed to get the BOD to agree to the buyout at $20.I think if the stock hadn't fell off the cliff the BOD would be stubborn and reject anything shy of $25. I think this has saved Schulze and his investors about 3 billion...pretty substantial amount.
Shorts have had a good run but the rewards to staying short is very small considering the risk of buyout of upside associated with that buyout.
I am amazed by your logic. Let's assume the stock dropping to $7 in December 2012. Will that drop increase odds of Buyout at $25? Following your logic, I can say that BBY at $3 next year will be primed to finally accept Schulze $25 offer. If not, well, baggies practically would have nothing to loose, as they've lost substantially 85% of their investment made at $18-21, when Schulze announced his 'intention'.
I do not say one shall buy or sell at these levels, what I wanna say this stock has come to the territory where anything might happen..., except buyout. Fitch and S&P downgraded this and added negative outlook - it is not a joke anymore. BBI got similar bond downgrades just 1.5 year before BK.
If anyone want to play this bogus buyout idea (though it was announced 3 month ago and nothing official came out since, even in the latest SEC filings) of course one can do it. What I want is to suggest buying protective puts of March-June timeframes at least. If Schulze announces he wont persue buyout this stock will find it self well below 9 overnight.
NO CHANCE of buyout and that is why the stock has fallen 2 days after price collapse while Hewlett-Packard has risen from $11.70 to $12.40 in the same two days.
Again, there is no buy out...that was wishful thinking on Schulze's part to try and save his stock and his life.
I know you want to believe that but all you have to back up your theory is declinging stock price and I'm saying that is working in longs favor for buyout. The theory you have that the declinging price means no buyout just doesn't hold up.....you are speculating the same as longs. We will see who is right very soon.
Anything short of an outright pr stating Schulze didn't get financing or has decided against persuing taking company private and this stock moves up. You let any statement that even hints deal is still on and this moves up big! Place your bets...I have already placed mine.