Thresher Industries, Inc. (THRR)

[mdimport]

Reason THRR is flat into the Conference Call


Known data as of COB 03/23/2010:
Cash buyout price: $14.1m (per Business Week article)
Outstanding shares: 11,541,701,906 (per Olde Monmouth)
Buyout price per share: $14,100,000 / 11,541,701,906 shares = $0.0012/share

As opposed to a regular trading environment where a company's price will fluctuate as book value and other variables change, a buyout has a fixed end date. On or around April 10th, shareholders are going to have to come to terms with the dilution as THRR ceases to exist in its current form.

The remaining variables:
1. The acquiring company decides to increase its offer price.
2. How much more dilution is due.

My guess is that THRR will continue diluting and then effect a 10:1 R/S achieving the $0.01/share they announced initially

This is all about the end-game and not the day-trading positions.

http://investing.businessweek.com/research/stocks/transactions/transactions.asp?ticker=THRR:US