Tender offer was ,as I understand, for a price between $28 & $30.The stock is trading way over $34.If you made a tender offer at any price between this limit you are looser.As of today and for past few days,aol is making a new high everyday. Those who did not make a tender offer probably anticipated higher valuation for aol. There will probably a class action law suit. My friend stand in line for this law suit.
Alright people there is a lot of hype and noise around aol, but what is facts and what is b.s? Technically speaking it begs for a short, fundamentalists say the same. Why? well just read the news on that one. As far as technical analysis goes, I am too a bear and I think those who short will do just fine. Now keep in mind that it's not a long term hold but there is bad news on the way for AOL, a possible law suit as well. If you looking for a nice swing trade then by all means short this sucker.
That's my 2 cents, I could be wrong but I rather do my own DD.
If the people with very deep pockets are selling why not follow the leaders and do what they do instead of trying to fight a losing battle. We all know the big guys always win, join and you will make money. I have my money on shorting AOL.
i figured the price would drop after the tender offer was complete, but have been reminded by others here that AOL has vowed to return all of the $1B in proceeds to shareholders. that leaves at least $600M to do a second tender offer.....possibly at a higher price than the first round.
they will not do a second tender. You've seen 2 high profile stocks drop terribly after the tender b/c if u noticed in JAKK and WBMD almost everyone tendered their shares -- b/c they wanted to sell.
IN the AOL tender offer -- look the market price already exceeded the tender range. If you noticed only 250,000 shares + got tendered -- ie nobody wanted to tender their shares. I mean why people tendered their 200,000 + shares is probably b/c they didn't know they could undo their tenders. Oh well.
You have until 8/2 to tender your shares through your broker for the privilege of receiving less than market value at the moment. AOL might buy back your shares on a random basis anywhere from $30 on the high side to $27 on the low side.