I'm not sure if it's a mess, or just highly confusing. If TIPS hadn't already begun trading, We'd all probably feel alot better.
Anyway, this is what I came up with:
1. Seeing TIPS trading at $6 begs the question,"Why isn't TNRG over a buck? If most of the current price of TNRG is the internet "stuff", wouldn't it seem logical that AFTER the spin-off the combined price of one TIPS share plus four TNRG shares should equal the current price??
For example, four shares of TNRG are currently $2. After the spin-off those shares would probably be worth 40 cents, PLUS you'd have one share of TIPS at about $1.60 for a total of $2. I'm figuring TNRG will have less under its' umbrella (ekg, Nighthawk, basketball, etc),hence the lower valuation.
If this is,indeed,the case, we have a highly confusing situation.
ON THE OTHER HAND, is it possible we have just seen a tremendous price appreciation without realizing it?
2. If the "fair market value" of TIPS is $6 (and if that price is not just an artificial MM shuffle) and the "fair market value" of TNRG is 50 cents, the total package is worth $8. If you figure the "internet stuff" is worth about 75% of that, and the "other stuff"(ekg,Nighthawk,etc) is worth about 25%, you come up with $6 for TIPS and 50 cents for TNRG.
I'll be the first one to admit it seems too good to be true, but it's the only set of figures that make sense.
If this is true, then TNRG is really selling for $2 right now.
T A P, if you're out there, can you shed some light (or cold water) on this?? |
