Sure it's going up and sure it's the largest renewable energy company but they can't make any money. This stock should be valued as a homebuilding stock.
I bought in the teens several years ago (when they had no debt) and saw stock go under two. Yet I don't believe they made money in any quarter since then. So that begs me to ask "Who's buying this POS?"
That's a 40% premium from here and also where the stock was when CEO said they are looking for a buyer. Most companies are buying back their own stock. There will be interested parties but there is a chance oil will test its lows so likely buyer will emerge in q3. I see today strong buying because there is still a nice buyout premium.
It just means the Treasury dept has shares on the books. They are the ones who issue and create stock for things like options.
AbbVie to Acquire Pharmacyclics for $261.25/Share in Cash ... (go Google this) You can't just multiple shares you see in Yahoo Finance. You need to take into account things like PCYC owns Treasury Stock.
I mostly sell naked puts and calls. I think oil will be 80-90 in two years so I'm selling a lot of naked
puts on oil stocks. I'm here because I was getting a huge premium. I sold the March 20 200 strike price naked puts at $283 a contract yesterday when stock price was over 230.
I wrote The Jan 17 250 option price was collapsing as the stock rose. This is unusual. This proves there
was insider buying. I sold naked puts. Like stealing candy from a baby. Hope you guys made money too.
I think deal is being made at 235-245.
He admits he changes strategy quickly. We know he bought back in the 20s. He probably didn't like what he saw, heard, or didn't hear, and sold out everything for a profit. Lets face it the selling was strong.
The premium will be stock after earnings. 180 +60 = 240, That's 80x 2015 earnings. Don't expect higher. The stock closed at 220 today. The fact 8 million shares were bought at this level shows we will go higher but a tad more. It will be a stock deal so the arbs can make money(what would a buyout be without the schnitzlers?), but the buyers stock will drop on the news so a 240 buyout stock will only go to about 235 until SEC approval.
JNJ Is manufacturing their stuff. It wont make sense for Novartis to buy since I would think JNJ has a buyout clause preventing this without first rights of refusal.
$18 billion is around 242. But they (whoever they are) pay a tad less before the announcement.
Paying 220-230 is serious money since its so close to the probable buyout price.
I think the only people who should be buying here is the eventual buyout company. I'm just selling puts (as I wrote a few days ago) but still making good money.