The increase in pay for Wal-mart employees should help to increase Wal-mart sales, as the employees will have more money to spend and since they are in the store anyway, its easy to spend some of it there.
While I am not saying that this will result in a big sales increase for Wal-mart, every little bit helps nowadays.
Plus WMB did a secondary issue a year ago this past summer at $57 - hard to accept below that IMO
Good analysis (IMO). I was looking at my Jan 65 calls and they did not even trade today with a bid at 2 cents and ask at 47 cents. Even the 62.50 traded today at only 22 cents. Considering the 4 months left on these, It seems to indicate that the $64 (or higher) price that some people are hoping for is not going to happen. As I said before, likely in the mid-50s.
One thing to consider - assuming we see an offer at all - once we see the new price, that is it. With no other bidders, it is very unlikely we will see anyone step up and buy it at a higher price.
While I would be extremely happy if we get $74, I seriously doubt it. We need to remember that at the time of the original offer, it was a STOCK deal for about .93 shares of ETE. At the time, that would have been equal to about $64 (which is where is number originated from). Since then, the energy sector has been on a downward spiral and ETE is down around 27-28%. At the current ETE price the .93 (split adjusted) shares would be only worth around $51. So, even if ETE ups the ante, I doubt we will see the final offer over $60 - but again, I HOPE I AM WRONG!
Sentiment: Strong Buy
Assuming that the deal goes through, oI bet we are not going to get the price previous discussed at around $64. My guess is $57. I base this on the current dividend of $2.56 and an estimate yield of 4.5%.
Any other thoughts?
Hard to short a stock with a 3.5% dividend yield. Not worth the risk IMO as the upside is so much greater than the downside.