Yes, in theory you are correct. Every unit owned of SPCO will be traded for a 1/4 (26%) unit of Allegro. So, based upon todays figures, your math is also correct. I probably sold too soon, let me explain why.
They had a conference call today that gave them some boost back up. The company will consolidate many of the operations streamlininig their expense structure and make each more profitable, and with the merger a much improved expense structure.
So, I sold half of what I owned, which will limit my downside potential, keeping half for the upside potential. My concern is what price will Allegro be when it goes through? If Allegro drops to 5, possible, then my $2.00 SPCO is now worth $1.25. My biggest concern is that neither company makes great products, they are ho-hum.
I got in last week at just under two as I heard a merger was happening, I just didn't know it was a smaller company like Allegro. Had it been a major player, SPCO may have gone back up to its better levels and my 10,000 shares would have paid off! Oh well, I will stay with what I have and hope the math works for me. I think it probably will go up, as you pointed out, it makes sense.
Please let me know what you or anyone thinks, hate to lose even more!
Jim Fisher
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