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Post by caveman on Oct 30, 2008 10:27:51 GMT -5
ok so lots of volume before mmg stopped trading now no volume. what is going to happen once mmg shareholders receive their drv shares? will mmg shareholders continue to sell? will the stock go up or down? was that just the institutions selling mmg off before? we now know drv doesn't move down when mmg is not involved. here's a thot. if i was wanting to buy a few hundred grand worth of stock but wanted to wait for the merger to happen, i would also wait until the shares are handed out and the float is a lot larger. anyone buying now would bring up the price like crazy. if you buy after the shares are distributed there is a much better chance of gathering more shares under $1 just my brain leaking out
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Post by venturous on Oct 30, 2008 10:41:09 GMT -5
Hmm... That is true.
However, If the market is pricing things correctly, then we are only seeing the results of 50% of the property ownership right now. So, that 40 cent stock price represents 50% of Aguilla and Pasacancha. When the MacMillan shares come over, the other 50% also comes over as well. So, say we have 27 million shares right now, we receive another 31 million shares. Total around 58-59 million shares. If we didn't receive the other 50%, then the share value would be 19 cents. However, that other 50% would keep the shares close to 40 cents. Of course 31 million shares is more than twice 27 million shares, so we might see a bit of a dip, say 5 cents or so. It would be a good idea after for people to buy more. I don't think we will stay too low for long, but that is JMHO.
ven.
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