Don-
Of course, if the mar10s stay in the money, they'll be worth at least the difference between the stock price and the strike, until expiration. If the stock fails to stay above 10, the value may begin to diminish as the belief in a takeover diminishes.
As far as confirmation, I know of no way (legally) to substantiate a rumor, but I have heard recently that the offering price may be $15-16. This would be less than the $20-21 I think is fair, but I'd probably accept $15 at this point. I think that if an offer is made for the company, it will occur this coming week. I couldn't imagine that 13D won't be filed by Friday, and it might even be filed tomorrow. Considering the amount of stock that has been accumulated by someone(s) recently, I think we will hear something from National Media this week.
Volume was higher on Thursday, because the stock entered a zone of resistance, where many people were waiting to sell at $10-10.50. This resistance exists up through about $11.50. Friday's volume may have been lower because the buyers were intent on buying at $10. If this were true, they would wait until no one is left who will sell at that price. Volume was light on a lot of small stocks on Friday, so there may not have been as many sellers.
Even though I believe that the |
