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Alliant Techsystems AŞ. Message Board

  • meteorbyte meteorbyte Jun 7, 2014 6:20 PM Flag

    Need some Board-Smarts/Advice !!

    had ATK some years ago in the $60 range.. stopped following it. so now i read about a merger with Orbital AND a spinoff.
    I need some advice, as ATK IS very expensive at this point.
    1) would it be better to buy Orbital pre-merger and get roughtly less than half of ORB-atl post merger?
    2) would it be better to just buy ATK pre-merger.
    3) does anyone have more facts, prognostications on the "Sporting" company spinoff? how many shares per ATK share will ATK owners receive? 3.5) What about the actual prospects of the "Sporting" company's future? i mean "Savage" shoudler weapons and ammo may not be that lucrative in the long run.- not sure...
    Please let me hear from you, and consider any information will do the whole Board good.

    ThankYe, Harry

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    • Hello...I am an owner of ORB. I do not have all the answers to your questions, but hopefully this will help. The good news for ATK holders is that they will receive full value for their shares at the time of the merger/ spinoff. So , if at that time AtK is priced for eg. 150, and the market prices the spinoff at 80 , then the A&D merger will be priced at 70( the new company OA). If you had 100 shares prior to that date you will now own 50 shares each at 80 and 70 respectfully. At those prices , ORB is currently a bit cheap as 70 times 44.5% equals a price of 31.15. The new aerospace company, OA, will earn roughly 4 per share with a bit over 60 million shares outstanding.
      Hope that helps a bit....