Another rookie question. I also have some money invested in FTWR. And on the FTWR message board there are also some people speculating about a buyout. And somebody was saying you had to get in now because when they announce a buyout the share price will explode and you won't be able to buy back in. And that's the thing that confuses me. If they announce a premium of 50 percent for example, wouldn't the trade then just be halted? Because who would sell his stock for less and who would buy the stock for more?
Usually the buy out when announced is in process but not totally closed. The stock will usually and immediately trade like crazy up to almost or exactly on the offer price in the buy out PPS. Look at Apria and American Home Patient as an example and read some of the past info. Those will give you the basics, especially AHOM on what we are looking at here if in fact that is what happens. Howevever, who knows if that will happen. This one has many different paths it could follow at this point. Good Luck.
Thanks steve and justin for your informative replies, appreciate it.
@onetimetwotime I only mentioned FTWR because its on their message board that I read the sentence that confused me. But my question was actually a general question that in my opinion applies to every company that is in a possible buyout position. I posted the same question on the FTWR board but people only call you a moron over there if you say something. So I decided to post the question over her because I know there are some serious people (steve, justin,...) on this board that take their time to help a fellow investor out.