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Re: Bob 1948 post# 84096

Tuesday, 08/15/2006 12:46:36 PM

Tuesday, August 15, 2006 12:46:36 PM

Post# of 326400
Typically speaking, in a buy out, the premium over the pps is about 20 percent. So for instance lets say a companys stock trades at 20.00 a share. On a buyout offer, the offer might be in the 24.00 a share price range. On news of the buyout offer of course every investor wants a piece of the pie below the buy out price of 24.00 a share, so there is a surge in buying, creating a shortage and the price soon goes to 24.00 a share or higher on its own, before the buy out evver occurs. Remember I said typically. If a company wants another bad enough they might offer 100 percent premium to existing shareholders, although this is very rare. So in the case of NEOM, evn in the rare case with the pps now at .12, a 100 percent premium would boost the price to .24 a share, still far below what many of us paid. There are some real rare cases where 200 percent or more is paid, but I dont see NEOM in this scenario at this time, since their product is still in infancy, and not adopted by society yet. In this scenario it puts NEOMs market cap at about 192 million which is concievable, but the 1 billion talked about here by others wont happen in this price range.