Everyone has opinions. They give you their two-cents worth. I'll give you more. One penny more. That's a cool 50% more than others. And that's wicked value.
The LIVEROCKET investment philosophy is that at any given time, there are amazing companies out there that are building better mousetraps and generating incredible sales. This is not a buy and hold philosophy. No company can maintain exceptional growth and momentum for long.
Sunday, June 03, 2007
DIGE being bought for $61 per share
A Dutch company announced intent to buy DIGE for ~$61 per share
I read the fine print and it is not an either cash or shares. There is a limit on how much cash is on offer - meaning that DIGE shareholders are held sway by Qiagen's stock price, which is down.
I don't know enough about the acquiring company to make a decision about staying or taking th emoney and running.
I'd like to take the cash and buy stock in the companies I've identified.
Hi
ReplyDeleteCan you please comment why DIGE closed below the price it is being bought ?
Purchase Price / Share = $61.25
Closing Price / Share = $56.82
So even if i buy now i can make close to 4.5 dollars profit.
Thanks
I see 2 things:
ReplyDelete1. Always a bit of a gap due to time value of money and the risk that the deal doesn't happen
2. Acquiree is using a share based formula, and their share price dropped 10% today.
There will be no 3rd party. Per the deal, DIGE has to stop any discussions with anyone else
As I read it, the deal is $61.25 OR 3.545 shares of Qiagen stock.
ReplyDeleteWhich will Live Rocket choose?
I read the fine print and it is not an either cash or shares. There is a limit on how much cash is on offer - meaning that DIGE shareholders are held sway by Qiagen's stock price, which is down.
ReplyDeleteI don't know enough about the acquiring company to make a decision about staying or taking th emoney and running.
I'd like to take the cash and buy stock in the companies I've identified.