Good morning, all. Ray, from the same press release:
>> TORONTO, April 8 /CNW/ - This letter of intent has been executed by both Signature Brands Limited and CD Plus.com Inc.
But you're right, at this stage, nothing is written in stone. Still, this isn't an OTC BB stock and a press release at this stage I think is significant. Especially since SBX has stated since at least Dec/98 that they are looking for acquisitions. [Worst case scenario, there would be very large implications, to a company that did such a PR and then, say, insiders sold shares on the market. Would be easy to find out about. So, although this a potential risk I also thought about, I dismissed it. The few ways you can make money on an increase in your share price is to issue shares - money is kept in the company, or to sell your own shares. Increases in share price don't usually affect conversion ratios much - valuation looks beyond the volatility of the market. Looking at potential scenarios, I think the PR is sincere and simply full disclosure. Would also help avoid price increase on rumours, which would happen.] BTW, this is a reverse.
Normal practice would be that CD Plus also approve the release of the PR, if that tells you anything. At this point, however, it is still speculative.
Regards, t. |
