I don't know if that's an accurate valuation because there are a few things in the NR that seem completely ambiguous to me. But here's the thing. The deal will take time, and in the meantime the float is so tiny that overzealous online traders can make just about anything happen. These kind of traders don't pay much attention to valuation estimates, or the macro, or the VIX... the VIX could pop to 20 tomorrow, and they might still drive CLTX to $6 all the while it was happening.
Well, definitely there was spectacular news, and i'm sure the stock is worth a lot more than 89 cents today. But the news release was so convoluted that i have no idea if CLTX is now worth $2 or $20... or maybe it's worth $20 for a day, then gap back to $2. Since i can't figure out what it's worth, i'll just day trade it for now.
You can have my opinion for what it's worth. Since the outlines of the deal are way too vague & speculative to calculate any sort of CLTX valuation in the final result, the whole thing is now moving on low float and retail sentiment. What happens tomorrow, or after the dust settles, is a total crab shoot, and nothing but a day trade on tech strength as far as i'm concerned.
"ach ADS represents 10 ordinary shares. Based on yesterday's ADS closing price of $0.61 and assuming an aggregate of 949,410,450 fully-diluted shares following the close of the acquisition, each ADS would be priced at $1.58."
But this is a really complicated deal and neither i nor the retail market understands the resulting valuation just yet.
I guess FOMC wasn't reading Gross' posts today, or they would have raised rates for sure, economy, inflation and the trade balance be damned.
(i mean, one person can't type two messages simultaneously unless he has four hands) ~ but the "TVIX investors" hypothesis is cute, you have to give him that.
Well, if they ever stopped to think about it, they'd realize we can't type at the same time, unless we are four-handed computer operators like the ones on Titan.
China is a maturing BRIC economy, with GDP growth around 7%, not a "meltdown".
TVIX investors??? Did you think this was a true equity with fundamentals, a business plan and investors? I've heard (but cannot verify) that residents of the moons of Saturn (Titan notably) have bought into the Titanic TVIX fund, holding long & strong.
thanks trem... i guess some clarification was in order there (and of course we are tracking Sept VIX futures) - mustn't take anything for granted on this board - driven mostly by emotion.
Market has been range bound all year, and within the context of that tight range, this sort of discussion has no relevance. TVIX has a mind of its own and will always retrace to zero, all things equal. raybans nailed it when he said "six months is an eternity for TVIX". Before a market correction occurs, if it does, TVIX will strip you of your shirt, your pants and your underwear.
my credit is decent, so i've always had a margin account - the broker automatically gives me 3:1 leverage i choose to use it or not. So, i don't know if "only margin accounts can short" and i imagine credit policies vary from one broker to another. I can tell you this: leverage can lead to a margin call anytime your losses exceed your credit line, but it i has nothing to do with shorting... longs get margin calls too.
What getting_it_way_up says is the only thing that matters. he always knows best. BTW where is blue tinkerballs these days... i need him to teach me how to read a form 4. tinkerballs where are you?
the EVOK chart sux but, in fairness, a 15 pt drop in the SnP this morning isn't helping hi-betas at all. Two powerfully negative vectors today.