So funny is the huge number of press releases by various law firms "reminding" clients that YOU could be the lead plaintiff against ARCP if you act before Dec29. So funny how they all announce a lawsuit but now are all searching for someone to represent. Oh well, as the joke goes,"whats lower than whale poop?... lawyers".
Ventas stock kept low allows Ventas to acquire HCT for hundred of billions less than what HCT thought when it agreed to be acquired. It enables the HCT acquisition to occur near par cost with zero or near-zero premium being paid to HCT shareholders in spite of their predictions. At least a quarter of a $billion less.
Here's why: HCT shareholders originally paid $10 par for their shares but they agreed to convert each to .1688 shares of VTR. When VTR was 67.13, each HCT share would have been worth $11.33 (a +13% premium). Now however, should VTR hit $59.25, each HCT share will be worth $10 par alone with zero / zilch premium. More amazing still is that, if VTR goes below $59.25, HCT shareholders will be paying Ventas for the takeover of their HCT shares.
A savvy deal for Ventas. Getting HCT to lock on the .1688 convert with blind trust Ventas would hold $67.13 or higher, when of course, Ventas controls this to and thus can effectively sway the actual acquisition price. Its like someone saying to you "I will buy your house for $500K if my credit score stays above 700, but if it fades (and I control this), you agree to discount me as much." Very savvy indeed.
HCT shares become 0.1688 VTR shares. Back in May, VTR was 67.13, making each HCT share worth $11.33. However, today VTR is 61.82 making each HCT share worth only $10.43. (HCT's price today of $10.52 is in fact overvalued). The merger should have locked in an HCT share premium for the merger instead of a share multiplier. Ventas dropping since May undermines HCT shareholders. Not good. Not good at all.
From the merger documents.... "ARC Healthcare shares will generally be converted into a fixed number of Ventas shares, based upon a negotiated Ventas stock price of $67.13. In the transaction, ARC Healthcare shareholders will ... receive .... 0.1688 Ventas common shares ... Based upon the agreed upon Ventas stock price of $67.13, the per share value of the transaction represents a premium to ARC Healthcare shareholders of approximately 14 percent over ARC Healthcare’s closing stock price on May 30, 2014."
#$%$? Something is really really odd. 26M traded on the close. This is the third time recently that such volume has occurred on the close. What could possibly explain this? Something is very odd. Anyone?
The tender of 11.33 was for a limited # of shares and has passed. That tender isn't interesting but last Fridays close was.
10M shares traded in the final minutes of trading. Friday volume shows 16m shares vs. 4m average. Obviously, someone big (with around $100m) thinks HCT is going higher.
To 'Checking_here'. May I can offer you and others some thoughts. I'm guessing that you're short VRX. Are you aware that the most shorted stocks are, and have been, the best market performers recently? The most shorted stocks are up five-fold the S&P. Lets consider why. Our Government has printed over ten trillion dollars of new money to stimulate and revive the economy. This was a risky action, and taxpayers are on the hook for this money, but printing vast money to stimulate was Ben Bernanke's idea and direction. Now it is true, that our Government did not want this vast new money simply end up in the stock market, but, unfortunately this is where the bulk has gone having been (mis)allocated there by our nations financial sector. That being the case, the Government cannot now simply let the market decline because this would allow the vast new money to simply "evaporate" and leave only the debt on all of our shoulders. Therefore, the Government covertly needs the markets to stay up, at least until, all that vast new money (over ten trillion) begins to move outside of the stock market. Overall, the Government has gotten itself into a very tricky spot. The people that are trying and failing to short this market need to recognize who and what they are up against. Even though the Government is "tapering", it remains still pushing tens of billions each month into the financial sector. That's "hundreds of thousands of millions" each month betting against those short.
I've had a bad ride with KMP and would not recommend it. Company in transition. Also, as an MLP, KMP involves year-end K-1, Form 6521 (Intangible Drilling Costs), Foreign Tax Worksheet, Partners Basis Worksheet, Schedule E, PTP.
Solid move. I am not sure why but Loomis-Sayles has a stronger correlation with the stock market than any of my other bond funds (PIMCO, Doubleline, Franklin, etc). If equities have a rough time (as they well may), I would expect LSBDX to also have it rough. Anyways overall, you did well.
With HPQ soaring and BBRY dropping, HP could acquire BBRY to right the PALM fail. The $1.2B PALM acqusition was deemed a great opportunity, but so sadly failed. You don't often get a second chance, but BBRY is nearly in an identical position to PALM when HP pounced before. Second times the charm.
Ninebagger, this is fx from prior sbux talk. I told you 5 times about vrx and wonder if you pulled the trigger. Up again, today +11%.
This is the second time when HP was heralded as evidence of strength for the market. Exactly the same thing happened about a year ago. If HP evidences market strength, our market is in huge trouble.