A few thoughts on the P...I'm thinking out load...
Shareholders of record on Sept 1st will receive 1 share of CVIA-P for every 10 shares of common owned. The P will convert to 10 common in 2003. It will also take approx 30 days for the TA to issue these new shares into our accounts.
This will result in the issuing of approx 40,000 of P shares to current shareholders. Additionally, CVIA will retain 60,000 P shares for future capital needs making the max future O/S of P 100k. So, assuming CVIA does not immediately sell any P to MM, the P float on Sept 1st will be 40k (tradable in 30 days or so). I'm guessing this P float will be very tightly held creating a large spread and high volatility when trading commences. So, anyone wanting to go real long CVIA with the P, it is better off buying the common today and receiving the P next week.
Additionally, the only P inventory the MM will have will be as a result of their common inventory and the end of the day today. (This is the reason why I think we can't split the bid/ask) I wouldn't be surprised if the current common MM inventory is at an all time low. In fact, I wouldn't be surprised if some of the MM making a market in CVIA are short some shares. I bet we'll see some after market adjustments today, Mon, and Tues as these guys try to settle their accounts. I don't thing they have a 3 day settlement rule. I think they're kinda like a bank, they inta-wire the settlements. Anyone have Level II to see the MM line-up?
HEY, Novice Bob, weren't you gonna do a share count to see how much of the float is held by known shareholders? I'm game...I bet we're real close.
Anyways, I think I'm talking myself into getting a few more shares... |
