I just don't see it. Can't agree with you and baycommuter. I still believe all the "go go" in REI went to RRI, including most of the future earnings. That P/E of <15 that you're touting just wont be there because the earnings won't be there... they'll be in RRI. I believe the markets ARE efficient and the smart money knows something you're leaving out of the equasion. And the company is not going to give us the missing piece of the puzzle until it's a done deal.
I still want to know definatively who holds all the California debt. I think it's REI and that's why it's spooked. I'm putting my money on RRI and not buying into that REI pile of debt. Wish y'all the best and hope you win big, but I'm putting my mad money into shorting Krispy Kreme (KKD).
You already own RRI stock by owning RRI's owner. REI owns 80% of RRI. REI has 297 mill shares outstanding and a market cap of 13.7 bill
RRI has 292 mill shares outstanding (80% held by REI) and a market cap of 10 bill.
I would guess that the market cap for REI includes the 8 bill worth of stock in RRI.
This means if RRI stock doubles in a year, its market cap becomes 20 bill and REIs market cap becomes 21.7 bill.
Here's a puzzle: One of the analysts covering REI has a 12 month price target of $11. I'm guessing he lives in California... High Target $63.00 Mean Target $43.08 Median Target $49.00 Low Target $11.30