Mel,
Here's how I see it working. You are correct that after the merger you will have 2250 shares. (slightly more than I) After the merger, on the date of the reverse, which will be posted in advance, the shares will open at about 4x of the previous days close. So if it closes at say $.70 the day before it will open around $2.80 the next day. This is only approximate since the ATXI price the day before could affect the price. If ATXI closes higher than 4x of FAMH on the day before, there will be some adjustment needed.
The thing that makes this less precise is the fact that this is a merger. Merging complicates things. At any rate, the price will be immediately affected by what the market perception of the merged company is at that time.
If the market feels that it is appropriately priced, it will remain stable. If the market feels that it is undervalued, it will go up. If the market feels that it is overvalued, (yeah, like that's going to happen), then it will fall.
Any way you look at it, there are some unknowns which could move the target. Of course, most of us here feel that it will rise soon after the merger. That's why we are in this stock. The reduced number of outstanding shares and reduced float and NASDAQ listing should put us in a VERY good position to move up. Then when the financial reports come out, BIG BADA-BING BADA-BOOM. Price rise heaven!
Disclaimer warning!
All of the above is my opinion only and not an offer to sell stock, blah, blah, blah.
Stay in the Black! I AM! ;-) jimS |
