from a Yahoo! post I just snatched,you are right Iceshark this is much smaller than CNBC indicated--the guy emphasis on just 4 stocks--which he then named was quite felonious--
it is a weighted fund in which EBAY is weighted a PALTRY
6%-8% I quote the post <<But what does all of this really mean? We've got 3,766,700 "shares" valued at over $400M. This indicates a
price per unit trust of about $110. The interesting thing is that they say that of every "round lot", you get six
shares of EBAY. All right, if you invest $11,000 (100 shares of the trust), you get six shares of EBAY, which
would be worth $846, using yesterday's closing price (they would have to use a historical price in order to
write the press release). So, on a dollar-weighted basis, the value of EBAY in the trust is about 8%.
8% of $400M is $32M. At yesterday's closing price, this implies that 170,000 shares of EBAY will be in the
trust. The big question is how much of this ML has to buy in the open market. Is this trust their "dumping
ground" for their stock of inets?
It's food for thought, if nothing else. They may have succeeded in securitizing their problem, if the offering
goes over well. I'd like to know what their obligation to make a market in this unit trust is once issued,
because it looks like the trust will trade publicly, rather than function as an open-ended mutual fund.
Full marks for cleverness to ML.
R >> Max90 |
