My guess is that since the dividend isn't showing up in the financial information on the stock, that most stock screeners are not picking it up. You have to read the articles to figure out it has a high paying dividend. Once that info gets into the stock screeners, it's more likely that some retail folks will start picking up more of it. Right now, you'd only find out about this stock if you were studying this specific sector. And even then some may assume it pays nothing.
They are buying the RIGHT to buy the bank for an as of yet undisclosed sum. As part of buying the bank they are agreeing to invest 100 million into the bank... not the holding company. I.e. They don't make the investment of 100 Million until AFTER they have bought it from FAMR (the holding company).
As I understand the PR's, the 100 million is what the investors are agreeing to put into the bank AFTER the sale. They are not buying this for 100 Million. The bidding is for the right to buy the bank and invest 100 million into the bank. The price they are bidding has not been released. The money shareholders MIGHT get will be the based on the final bid. If no other parties show up to bid, shareholders might get very little if anything. You can be sure the bid amount will cover salaries and option agreements for the current management and a portion of the current debt. But probably not much else. I'm seeing a big write-off in most stock holder's future.
Because the TEVA bid is 3.65 + performance payments like the ENDO offer did. That's why we sat at around 3.25 when ENDO's bid was only 2.85 + performance payments. Some folks are willing to pay for the future payments.
I expect that any shorts will scramble to cover today to prevent getting squeezed more in any bidding war. Once the shorts cover this will settle around 4.05. Unless of course ENDO ups their offer and a bidding war starts. Then who knows where it might go.
But today is a day for shorts to get burned. :-)
Ok.. got messages today from my broker that if I want to sell my shares for 2.85 and the possible future 3.15 I have to call them and let them know. But what if I don't sell my shares. (BTW: I sold most of mine in the 3.30's this past month, I just have a token amount of about 2000 shares). I assume the shares will no longer be traded after January on the market. According to the offer, Nupathe will continue as owned by Endo. Would my broker continue to hold the shares for me? Would I be able to sell them a year from now?
Yeah, but isn't 85% of the overhead, (now with a 40% reduction) now being picked up by the JV? And now drilling as well as outstanding debt is picked up by the JV. So that practically all of the 15% WI money, plus Woodrush production monies should all flow directly to the shareholders? The question I have is will those funds be diverted to more land purchases and for drilling not covered by the JV? Or will some of it finally, actually flow to the shareholders?