Forst Byte, By the time UBID goes public, the IPO frenzy may have cooled down a lot. Already, recent hot IPO issues have given back more than 50% from the first day high. EWBX dropped from 85 to 39 today, TGLO from 97 to 32.
MALL shareholders will get 0.719 share UBID per share of MALL. But there's a catch, they have to wait at least six months before MALL is allowed to distribute the UBID shares. Because of the uncertainty in price swings in 6 months, the UBID value per MALL share will always be traded at a discount from UBID's trading price. My guess is the value is discounted 30% (WCAP's value in COOL is discounted at 40-50%).
The MALL core business is valued at about $8. So my formula for MALL when UBID begins trading is:
MALL price = 0.7*0.719*UBID + 8
If UBID goes for $14, MALL will be $15.
If UBID goes for $40, MALL will be $28.
COOL opened at 25, traded at 6 two months after IPO, so let's not forget that UBID can go down too, so
If UBID drops to $7, MALL will be $11.5
Regards,
Tom |
