I thought it was after taking all the risk factor into consideration and I was right about it.
Now with this REGI offer, with REGI going up to $12 - $13 level, SYNM could worth well between $4.5 - $4.8 before the vote of the deal.
After that, holding REGI stock for long-term is another story.
If anyone here had read my posts a few months ago when SYNM was trading above $7 and expecting some multiple bids, I had predicted that even if there were a bid, it would be a low bid between $3 - $4 per share.
This is a fair price for SYNM.
REGI is not likely to go to $20 in three months before the deal vote, even if it does, $3.20 - $4.8 is a decent 50% return in three months. It's a good thing if REGI could go above $12.90 before the vote.
Never look back at the previous stock price of SYNM, look at it's current market price and its future.
If weren't the REGI bid, SYNM was trading under $2.5 a few days ago so now it's a big gain for SYNM shareholders.
Refusing REGI offer could be a disaster for SYNM shareholders so unless there is a much higher bid(say $5 - $6) before March, 2014, this is a done deal!
Hold REGI shares for long-term gain after the deal on March, 2014.
Then you would gain from $12.90 - $20 or even higher on REGI shares in the long-term.
I am a REGI fan so I bought some SYNM today at $3.2 and it's a better way to hold REGI stock at a lower cost (about $8.40 for REGI stock, one SYNM share equals 0.3809 REGI shares according to the deal) in my opinion.
As to REGI, I think the management is wise enough to survive any harsh environment like it did before.
Also I am personally positive on the renewal of the blender credits for 2014 and 2015 although it only depends on the government. So the future for REGI is bright.
If the blender credits past again next year, REGI would be a big winner on SYNM deal.
So it's a win-win situation.
Good luck to both REGI and SYNM shareholders.
Sentiment: Strong Buy
If REGI goes to $20, then your SYNM share would worth $7.6 in the long-term.
If REGI goest to $30, then your SYNM share would worth $11.4 in the long-term.
Why bother with law suit?
IMO, REGI is already the white knight saving SYNM here and nobody else would offer a better price.
SYNM management has made a wise decision since they knew the company better than its shareholders.
REGI is a great company to hold for long-term.
Buying SYNM shares now means you could get REGI stock at $8.5 which is a 25% discount on its current price $11.20.
If REGI stock keeps going up, SYNM will follow since for every SYNM you will get 0.3809 REGI share.
If REGI stock goes down to $10, I am buying it at $8.50 so the risk is much lower than buying REGI stock instead.
If this deal is not done, then it would mean SYNM shareholders think its shares worth much more than
REGI's offer which is $4.26 so SYNM is still way undervalued.
But I would encourage SYNM shareholders to accept REGI's offer since you will be a winner in the long-term holding REGI stock(it's going to $20 - $30 in the long-term).
It's bad for SYNM shareholders to refuse REGI offer since the bio market is not in good condition next year.
SYNM would have to struggle again and again to survive the harsh environment.
In my opinion, SYNM is going up to $4 to match REGI's offer soon.
Sentiment: Strong Buy
I think electric car is not the future due to the battery bottleneck which is really hard to break through.
In my personal opinion, solar car is the future.
Taper and rate hiking coming soon...
Next week and next month is the important time window, bear market might officially start.
TSLA is going back to $80 - $100 area next year IMO.
Competition and battery design are the keys.
It's not worth it to catch a little bit rebound.