or lets use "alibaba and the 40 thieves" . i wonder if the underwriters and insiders would relate more to the 40 thieves ..
if you believe all the hype... and think people are comfortable adding a hyper inflated stock testing all time lows with zero historical reference. sure then get on that chinese blimp made with brand new extra thin balloon. the rising dollar will negatively affect chinese sales on conversion to dollars. btw
wow your post contains so much insightful info. If people don't sell because of me, it must go up. i get it. such a logical counter. thanks for wasting space.
the real value of heinz is the unknown here i agree. but calculate your market cap with 1.2 billion shares. that is how many there will be once the heinz shares 51% of total are issued.
Fed spoke today raising rates soon even though economy looks dim. S&p about to have first red quarter in 4 years. BaBa doesn't have the power to go up especially when markets at all time highs and about to turn around, only one other choice and that is DOWN with no historical bottom other than 80. Starting monday, and selling picks up wednesday.
your looking at the 5 day its hovering, look at the daily since inception, teetering. not to mention the s&p about to go red and yellen today promising rates go up soon.
Big selling starts monday. and it will get worse on wedsnesday.
if buffet said that then he agrees with both of us. because 58b market cap of 1.2 billion shares is about $48
your math is sound. the only difference i find is in our premise. you are supposing that mr. market will take both market caps as of 3/24 and simply add them the create the market cap of the co.
i am supposing that mr. market is not as concerned with what the market caps were on 3/24 and have indeed now given us the their value for the merger factoring future implied shares.
now under my premise the question to be answered is. do we agree the new co. is worth 100billion less dividend. i don't think it is, i think it will be tested before it continues up.
correct me if I'm wrong but by your premise you are supposing the day the merger occurs they will add the market caps as of 3/24 i just don't see that as possible. i believe mr market is already valuing the shares at future merge market cap (their number)
100billion less dividend. we shall see....
ok, i understand your math. but i think at the end there. Kraft is receiving 1 for 1 share of the new co as stated in the PR. so they are only issuing shares new for the heinz holders. so 49% vs 51% ownership, essentially double the current share count: 587m x 2 = lets say 1.2 billion shares in the new co. , 1.2 bill x 84$ = 100billion market cap if it keeps trading at the current price less the dividend = at this price they are valuing the new co at $90billion market cap... do you agree?