Ed et all, a few weeks ago on the contest thread, a stock called Optimark, ODS -V, was briefly discussed. There is a thread on it , but I need to hear some opposing views and opinions. To me it looks like a great play, but I can't shake that nagging feeling that I am missing something.
The story goes something like this.
Optimark is to be bought by a newly formed American public company, called American Enterprise Solutions, or AES. The purchase price for Optimark is 1.00 Cdn.
AES will be using shares to pay for Optimark, and these shares will be evaluated by the market, using a 7 day trading average, to ensure fair value to Optimark shareholders.
Optimark last traded in Canada at 0.40 Cdn$, in the US at 0.46 US$.
The newly formed AES, which is to do the buying, is to be the result of a reverse merger between a private company, already called AES, and a publicly traded company, NATD, National Diagnostics . There will be a reverse split in NATD shares, before the merger will take place, and there will be a new trading symbol after, AESI. It will be a trading average of this new stock that will be used for the Optimark purchase.
Basically, the way I see it buying Optimark at 0.40 allows you to buy this new company at 40% of the value the market will have put on it.
I have no interest in this newly formed company, but I can't help but think that the 40% ratio won't last. As events draw closer, buying Optimark may well still trade lower then its buyout price, but IMO the gap will be filled to 0.95 or so anyways, by people that do want to get in on the new issue (AES), and can use Optimark to buy their AES shares at a discount.
On the down-side
It all sounds fine and dandy, but I am confused, why is there so little interest in the play.
Trading volumes have been low to nonexistent , and you can still buy at 0.40 or so , nearly a month after this news was first released. The major buyer to this point is Cannacord, although I would rather trade with them the against them.
Also, a proposed deal having ODS merge with a different company (Cortex) last year fell through, which may go a ways to explain the lack of confidence investors are showing.
Subject 6676
www.optimarkinc.com |
