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Hudson City Bancorp, Inc. Message Board

serieswins26 1 post  |  Last Activity: Apr 1, 2014 8:55 PM Member since: Jun 15, 2006
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    whats the advantage of the $10 shares

    by sammy88sammy Apr 1, 2014 11:07 AM
    serieswins26 serieswins26 Apr 1, 2014 8:55 PM Flag

    This is how I see it. The number of shares sold will determine the exchange ratio. The exchange ratio will determine which shares are a better buy. Let's say you buy 1000 shares at $27 and they sell all 264.5 million shares then the exchange ratio will be 3.0702. The 1000 shares will become 3,070 shares times $10 or $30,070 so you will have made $3,070. If they sell the minimum then the exchange will be 1.9733. The same 1000 shares would become 1,973 at $10 or $19,733 or you would lose $7,267. Or the exchange ratio could be anywhere in between. If you buy existing shares you may make or lose money but if you buy new shares you'll break even. Despite all of that what you are buying is a bank that raised $500M in initial 1st step and grew assets from $5.5B to $15.8 billion and income had grown significantly and they are paying a dividend. What you need to decide is what will they do with up to $2.65B. I don't think it's not so much about buying existing share or new shares but where this bank and stock will go once they put all that new capital into play. I'm betting that it only goes up from here. I bought in the original IPO and my initial investment has nearly triple. I hoping for even more this time around. MHO

    Sentiment: Strong Buy

HCBK
9.86-0.07(-0.70%)10:21 AMEDT

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