That's the direct value of the exchange... but there's an intangible of trading worthless stock for that of a company that, for the moment, appears to have some prospect of surviving. I'd feel better if the acquiring company weren't a Nasdaq/BB company, as well, but beggars can't be choosers. Also, don't forget that the value of the warrants goes up penny for penny with CYOE (as long as it stays above $5), so at $7, the warrants become worth .30 (per share of NUKO). So at $7 CYOE, we're already at $1 back per share of NUKO. At $8, we're at $1.25. The warrants dramatically enhance the value of the deal as we go above $5. BTW, does anyone know if the warrants trade anywhere, and if so, at what price? They may carry a built in premium (similar to a call option), which would even improve the deal moreso.
Just remember to get back to the $2 NUKO value of just a few weeks ago, we would need to see CYOE at $11 a share ($1.10 + .90 for the warrants). At least it's possible in our lifetime...
Who says a dead cat can't bounce??? Too bad CYOE's symbol isn't CYOA (Cover Your Own A--). It's be an appropriate moniker for BK...
Regards,
Joe |
