Seems like the obvious solution here.
The investigations don't decrease the chance of the deal going through. Have you read any of them? One states that the company is worth $40 because an ANALYST say so!?! IMHO, there is a group of hedge funds on the short side that paid for these bs investigations to scare day traders out, they'll be covering very shortly.
To put it in perspective, last 3 months EPS was around $1.80, so anything above $0.60 will give a PE sub 10.
quite a swing from -$3 on the low estimate to 0.65 now.
Shorts collude to keep the price low, so they will short 10 million shares tomorrow to make it seem like someone wants to get out fast!!!!
$1.57 billion rev and $1.56 earnings. Which equates to $3 in past 12 months earnings or a PE of 7! Shorts exit to the right in an orderly fashion, maybe comeback in a year see if IO is any worse than $125.
Very unusual, but all miners experienced the same CRAZY huge trade after hours. My take is, if the volume is legit (knowing how messed up the NASDAQ et al quoting system is the volume might be false), then here is what potentially happened.
The hedge fund group that shorts commodities saw a slam dunk with the FOMC resulting in tapering (negative for silver/gold/us dollar), so they shorted all miners across the board heavily (SSRI probably went to a 10+ million short total since it tapped $10 up to Wednesday). Then Bernanke surprised them all by not bowing down to their agenda, so they were in panic mode. Some bought back immediately following the announcement, but the shrewed ones "paid off" one of the FEDees to come out and guarantee tapering in October. Hence the collapse in commodities (and the stock market)! Since SSRI held up so well during the day the marker makers must have been collecting shares to feed the hedge fund shorts, hence the 7 million share trade (SSRI's biggest block trade in its history). Market manipulation at its finest!!!
BTW, there is a zero percent change the FED tapers in October, they are in too deep! Their house of cards would be crushed worse than in 2008 if they stopped pumping printed money in to the system. Their only hope is to get the economy buzzing so soundly that nothing could topple it - there is also a zero percent chance this ever happens! So the end result is the fed continues to print money until inflation gets so crazy (al la India) that it would be worse than dipping in to a sever recession again. Which means commodities should double again within the next 3 years.
Makes me think that ackman is behind the weekly options volume, where he tanks the volatility premium by creating a panic, then he buys back for free cashout.