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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Chisholm who wrote (2457)	5/26/2000 7:31:00 AM
From: Daniel Chisholm	Respond to of 2506

Quibbly bit of a correction. I wrote "Pricing is 90% of the average closing bid over the next four days." It is not the closing bid, it is simply the close. I can only plead that I must have gotten caught up with the rhyme and music of the myriad similar deals this thread has examined. From their press release: The number of shares and the price will be determined based on a per share price of an amount equal to 90 per cent of the average closing price for the common stock on the TSE for the four trading days following today. Some interesting maths. $C15M is essentially $US10M. If they choose to hedge that entire amount over the next four days (i.e., the pricing period), then they'll sell $2.5M per day, which is on the order of a million shares a day. This is very heavy, but conceivably possible to do so, particularly if the trading volume is above average. Not a bad business, if you can net 10% or so on your money in a month or so (ref my previous speculation. about not having to bother registering the shares with the SEC). - Daniel