"Last time I checked $31 cash was equal to......1 ten 2 twenty's and a one...."
lol, last time i checked...
1 ten, 2 twenty's and a one aded up to $51.
but i got your point.
I agree this is crazy!
This was a VERY serious offer... MSFT didnt just wake up today and floated a joke. This is well thought out and should be taken more seriously.
I have no clue why its still down 10%+ from this offer price and if I didnt already have a ton invested I would add more here under 28 for an easy bounce past 30.
Anyone selling here is crazy.
The Street sees a good opportunity for profits if they can pick up more cheaply.
So, they are naked shorting it. They are offerring non-existent shares as decreasing ask and buying them up at decreasing bid....selling themselves ever cheapening shares. Of course these shares do not exist except as an "imbalance" in the system. But the Street will also cover these naked short shenanegans near the bottom, removing the imbalance, as real shares on the decreasing ask side are grabbed by the Street.
As you will see, when they torpedo, selling themselves naked short shares, the ask is dropping and so are the prices of real shares on the ask. And then you see them quickly go up the ask and grab some of those cheapened real shares. It is a dirty trick, but totally legal.
The way this is written is not totally clear.
But I understand that the market maker is creating an illusion of infinite supply of YHOO. With this illusion, it can meet all bids and perhaps drive it downwards. The logic fails in that there should be infinite bids at prices lower than $31 ps.
Something elese is going on.
They were able to manipulate this down to $19 ONE DAY BEFORE the announcement! There is still money to be made. DOJ doubts(and of course manipulation) will bring it down maybe to $25 and then load the boat for the next bid in what should become a huge bidding war! At least two more parties will probably jump into this fray!