Ok,this was posted by me last night on the FHAL board,while in a half drunken stupor.So take it for what it;s worth....lol
Posted by: Austin6310
In reply to: None
Date:7/20/2006 12:45:48 AM
Post # [Max field length is unknown] of 5067
FHAl.OB,everyone else has given there two cents worth about the merger with CVSU.PK ...Well here is my take in as simple of terms as I can possibly come up with .....Whatever the closing price is,when the merger is finalized and we will use 7.00 dollars a share for my example.I am not saying that it will be 7 dollars,it is just a figure to use here.
At a 7 dollar close when merger is final.The CVSU.PK shareholder will then receive 8 dollars cash per share from the new entity CVSU.OB,...they will also keep all there shares.The 8 dollars will make up for the price difference that adds up to 15 dollars a share,which will be the opening price the day after merger is complete.
The FHAL.OB share owners.Which will also be CVSU.OB shareholders post merger....Will not get that cash difference paid to them......But it will open up at 15 post merger.We will have all our shares at the close of the merger and post merger.There will be no RS,according to the powers that be....After the merger,we become one company and will be trading under the ticker symbol CVSU.OB.... Then we are on our own as to what we want to do with our shares,as in hold,buy or sell.But they will be worth 15 dollars a share at the opening of the market post merger.
They have already announced that this will open at 15,post merger..The only difference in the two companies shareholders at the time of the finalized merger.Is CVSU.PK gets whatever the difference is in the price from close to open in a cash payout from the new company CSVU.OB.
CVSU.PK and FHAL.OB shareholders will be the same after the merger.They cannot or could never have two different sets of rules or stock prices post merger for the average joe shareholder... We will all be one in the same company trading at 15 dollars a share upon the opening of the maket that first day postmerger.
The only way FHAL shareholders can get screwed.Is if they dont finalize this merger and/or it opens 15 then drops like a rock.I personally believe this merger will go through and be finalized.But down here in BB and Pinkieland,anything can happen.So play this one with extreme caution imho.
I have thought about what will happen after the merger,when we open up at 15....I wonder if there will be a fire sale or will there be enough new buyers to take it higher or keep it stable.
I know I stand to make a boatload dollars from my free shares when it opens at 15 and I know there are a lot of folks out there who stand to make a hell of a lot more than that at the open of 15.Hopefully there are buyers on opening day.So that first day at 15 will be interesting if they do finalize this merger.
Anyone remember SPEA going from a few pennies to about 25 or so dollars a share in a few weeks,on a merger?Could lighting strike twice?As long as this deal is finalized,I think it can.
Ok I know some of ya are still confused and I know my take on it and writing expression skills didnt help...lol.So Call the company or a financial guru,maybe a SEC Lawyer and ask them for some guidance or just don't trade it.Thats the safest bet....anything can happen in pennyland,good or bad.
Good luck to all,in any way ya play this one.
Austin
"Bravery is being the only one who knows you're afraid." - Col. David H. Hackworth
"Bravery is being the only one who knows you're afraid." - Col. David H. Hackworth
AI
