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Smith & Wesson Holding Corporation Message Board

  • rockwoodpaul1 Jun 14, 2013 3:55 AM Flag

    Tender offer floor @ $10

    Tender offer goes into effect Monday and is open for 20 days
    7.5 million shares buyback @ 10/share regardless of current stock price.

    In theory, the tender offer should create a floor of 10/share for the next 5-10 days:
    -Current shareholders will wait to sell with the fallback option to sell @ 10
    -Investors will buy below 10 knowing that the price of 10/share is guaranteed for 7.5 mil shares
    -As of May 31 there were 11.09 mil shares short...avg volume is 1.6 million

    Investors = BUY
    Short Covering = BUY

    Based on earnings, buyback news, and shares short why would anyone sell below 10?

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