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MEMC Electronic Materials Inc. Message Board

  • gulleyj56 gulleyj56 May 11, 2007 11:47 AM Flag

    OT BRLC, generous brain trust...

    ....and you know who you are. Thoughts on BRLC after downgrade? CanFitz lowers target to $10 and change. Stock down big.

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    • got this off the BRLC board, fwiw....Merrill Lynch info:

      What will BRLC (& Merrill Lynch) set as a price per share for the stock offering? It appears that the rock bottom price right now is $7. There is no reason at all to go lower. Higher offering price means less takers but also less dilution. That is the trade-off they must resolve for which I guess Merrill-Lynch is providing advice.

      Some input questions, facts & ideas -

      1) Can they sell above the market price? How far above (is there a limit)?

      2) Price at which shares were sold to BRLC parts suppliers to raise cash was $7.32 (if i recall correctly). Would they be will to sell the Merrill-Lynch Shares below the price at which they sold to their <friendly and supportive> parts suppliers?

      3) What is the balance point between finding the demand for shares (buyers) and getting a best price they can? Is it $7, $7.32, $7.50, $7.75 or $8.00?

      4) How will they justify a price above the present market price (or price at the time of the official offering)? Is it based on trailing or forward P/E? Is it based on average price in the last 30, 60 or 90 days?

      5) What will be the block size of the stock shares sold? Will they be sold in blocks - 1000, 10,000, 100,000 shares each?

      6) Are we likely to see institutions grab most of these new shares?

      7) Could some institutions step up and offer to buy <say> half of the shares up for sale before the official announcement is made. Could those institutions justify to their shareholders buying above the present market price (or avg price in last 30, 60, 90 days)? How much above?

      8) If the share price is set by the average market price in the last <XX> days, it will likely be prudent for BRLC to announce a selling pirce ASAP because the longer it sits at $7, the price at which they can offer will average down to $7.

      9) What have I over-looked?

      This is a follow on to the post by

      Orders cannot be all filled (rgcbldr)...

      and thus funding needed now. This is not dilution. It may not make everyone happy and not be the preferred way but you need to make hay while the sun shines. Price agreements with Merrill Lynch not set yet - wait and see - maybe $10 or better. They would not involve themselves unless they will make MONEY. We may see stock split 2-3 times in the next two years. Patience y'all. This will be a teenager before Summer is up.

      Disappointing for sure - even Cramer said if this company didn't deliver, he'd have more than egg on his face cuz this would be the SECOND time...ouch