and just where did you get the new o/s share count to 20 mil?
always show your work :)
As many have penned last night, the deal announced only will add 600k shares (barring warrants at $5 strike).
Yes it did trade very heavy afterhours. It's almost like everyone that bought then flipped as folks thought "OMG 75 million shares are coming." Which as we know, is not the case.
If everyone just took the time to read the 8-K.
A post entitled "The Facts" should point out that the company is only putting out the authorization to issue up to 75 million shares.
In reality, this deal is only issuing 696,572 shares of stock.
It's easy math. 2,438 series E shares, each share valued at $1,000 (and at a $3.50 strike), gets you to the above number of shares.
There won't be 75 million shares hitting lol
Never seen such idiots posting before on a board. It's all right there in the 8-k.
There IS the potential for another 1.5 million shares to hit, but they are warrants, and at a $5 strike. I think everyone would be very happy if those got exercised, as the stock would be north of $5.
Calm down everyone.
There is no 75 mil share dilution coming.
look at any company (even large caps), go to their balance sheets, they all have X shares o/s, Y authorized.
Nothing more to it than that. Your math checks out.
wow, you really don't know eh? I will gladly educate you.
Many firms/funds that trade in arb situations lever up. Meaning, say they had a million dollars (we're using low numbers for simplicity's sake).
In your world, you buy the million dollars worth of shares, stock goes up, you sell for 1%.
In the arb world, they lever that up 10x, so they use $10,000,000 with only $1 million, and that 1% move becomes 10%.
Yes, that kind of leverage is offered (and even more) still to this day. Don't confuse it with the measly 4x your etrade account will allow.
In arbs and special dividend stocks (such as MLPs) that unless something happens to the deal or they consistently support a certain yield, these funds will lever it up, multiplying their return.
The fun happens when a deal falls through, or one of them gets scared triggering a waterfall in the share price. Doesn't happen often, but when it does, it puts the careless firms out of business.
I guess you need to think bigger rather than just your own personal funds.
Arbs (which probably exaggerated the decline today a bit), take that "little" 1.2% and leverage it up 10x or more. So that 1.2% in a month quickly turns into 10% for a few weeks. Not bad if you ask me.
As far as your other suggestions, they might be great, who knows. Again it's all if you can lever up (you should look into understanding how all of that works).
Personally, I am not levering up, but hey I can easily buy today 123.25-.35, and sell for quick scalps in the coming week. Better than cash if I'm not using it.
it's at levels that make sense to get the quick flilp. Arbs will be back in on it soon. Just some worry warts as of now. Deal is supposed to close "early Q4," which is October. Easy money to buy and hold here for a decent little percentage gain over the next few weeks.
wrong, just ran up on the FDA 3d printing email/tweet. The blog was first off from 8/15, and also the machine pictured was for a SSYS machine, and it's about printing prosthetics, not tissue (which is of course ONVO).
The machine in the FDA pic is a Stratasys uPrint SE Plus printer, not ONVO. Just google that to see the images versus the picture the FDA tweeted/blogged about.
I imagine a deal gets done. It seems silly to me that AMGN would offer $120 and just back away as if nothing happened. They may even go hostile. Yes I'm sure there are poison pills and whatnot, but the shareholders would surely vote to take this offer as opposed to what will happen should it get outright rejected.
Trading below $120 is silly. Probably a lot of what we're hearing in the press is misinformation anyways (do we REALLY think AMGN asked them to unblind a trial that's underway? Hell no, but thanks to the "telephone game" that's what came out eventually in the press).
There is always of course AZN still lumbering out there. At this point though they'd just need to put up or shut up and get a bid on the table. Be interesting to see how the stock trades tomorrow if no deal announced yet. We'll have to get used to drips and drabs of information coming our way if that's the case, and wild swings as details leak, no matter how right or wrong they are.