Anyone have any insight into the merger? I understadnd that the value of the merger is @ $17.5MM, which works out to $3.60 per share of DSYS, assuming that Alydaar's stock price holds up at $10+. So far, the market seems to approve of ALDY's purchase and no sign of a major plummet.
So why is DSYS trading at 2 1/2? There is always a discount for unexpected problems in buyouts, but a 30% premium sounds extremely high.
Well, this is, of course, terrific news. ALYD is getting a bargain and the bad accounting/misreporting/delisting history of DSYS will disappear. If you will excuse the expression, a win-win situation. Only, for myself, I wish I could go ahead and take my profits. |
