Cypress Semiconductor Corporation Message Board

Good luck finding any SPWRA to borrow....

Well now,
CY wi is $4.70
SPWRV is $77.10

so CY is a CY wi + a .2742 share of SPWRV

so $25.76 = $4.70 + (.2742 * $77.10)

$25.76 = $4.70 + $21.14

$25.76 = $25.84

Now isn't that wonderful how the efficient markets help everything come together?

Now about that SPWR A vs SPWR B spread....

but the discrepancy between SPWR and SPWRV prices is rather striking, especially considering the fact that SPWRB will carry more voting rights than SPWRA.
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Maybe you could sell short SPWR at $91.02 and buy SPWRV @ $77.50?
When the B shares are spun out, after the smoke clears, SPWRB should sell at a slight premium to A shares and you could pocket $13.52

maybe
imo

62 cents / share for CY makes a lot of sense to sell your spin-off shares now to beat the rush and lock in 62c Cy here.
imo

It makes no sense to short SPWRB (SPWRV).

I suspect that short covering is moving SPWR(A) up and the market is not aware of SPWRB (SPWRV),especially given the B's cannot cover a short position in the A's.

People are selling short the Sunpower B to squeeze out the CY discount.
SPWR is no lomger the proxy

Yes, someone pointed out that SPWRV was trading earlier today. Explains some things about CY price, but the discrepancy between SPWR and SPWRV prices is rather striking, especially considering the fact that SPWRB will carry more voting rights than SPWRA.

Volume disrepancy was large, as well. 150K shares of SPWRV traded compared to 1.8M of SPWR. Wonder how long things will take to unwind!

Regards,
Simple Simon

Oh! I didn't know that SPWRV already traded.

Implied price now is only $3.00 per share. Having been around $6.00 for the past month. And an amazingly low PS ratio. I can think of three possibilities:
- CY has just retired most of its converts. How much liquidity do they have? When will firms such as CY have access to the credit markets?
- SPWRB may, initially, sell for less than SPWRA, due to unwinding of hedging positions. Should be short lived. Especially if SPWRB changes to SPWRA upon sale (as it does today for CY).
- Unwinding of hedged positions relative to CY and SPWR.

Regards,
Simple Simon