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Gold/Mining/Energy : Corner Bay Silver (BAY.T)
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To: Mark Pajich who started this subject5/22/2002 3:45:05 PM
From: Canuck Dave   of 4409
 
Ok, so let's talk about the current price BAY:

How do we value it relative to PAA?

So If PAA is trading at 12$, this makes BAY worth 6.48 (12*.54) plus whatever those explorer shares are worth. Normal arbitrage at this point in a deal is about 90% of face value of the takeout price, so that makes BAY worth about 10% more than the 6.30 it was trading at when PAA was 12$.

So 10% more of 6.30 is about 7$, so those explorer shares are worth about (7-6.48)=50 cents according to normal arbitrage rules.

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CD
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