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?