Spencer Pharmaceutical (SPPH)

[docmts2]

Let's clear up any confusion. Actually, lets clear up my confusion. Al-Dorra has agreed to buy SPPH at $1.10/share on/or before March 17, 2011. In the meantime, they reserve the right to buy up as many shares as possible below the buyout price. They can't buy up all the shares at $0.25 all at once because when they start accumulating on such a massive scale, other MM's and retailers alike will jump in as the stock begins to soar. So they have to manipulate the stock over the next several months while slowly accumulating below the buyout price in order buy the company more cheaply. At some point near or on March 17th they have to buy whatever number shares remain at $1.10/share per the buyout agreement. So..., a large stake in this company now at about 0.25/share insures a 4+ bagger by March 17, 2011. Not bad if you're able to invest a hefty amount right now.

There must be something wrong with this reasoning or the stock should be at the buy out price right now. Either that or the MM's being the main players allows them to wait, knowing thay can trade with such speed as to get in at the last minute and still at a great price. After all, let's face it, the market is fixed because being an MM basically amounts to legal insider trading.

If I'm wrong here, let me know, explain why and give a better scenario/strategy.