Scarednomore:
I would say that the value of CDEX right now is real close to .82 cents per share. Baxa has very qualified financial people who looked at the assets, both fixed and potential, and made the call to pay 82 cents.
I view company's like CDEX as one would options. The value today is either low or high to the value in the future. If I could buy a $1.50 call option on CDEX for March or April 2006 @ say, 5 cents, I would buy 10,000 options. If there were puts available on a March or April 2006 50 cent put @ 5 cents, I would buy 2,000 options.
My logic here is as you have stated, By February 2006, if not sooner, I would speculate, we will all know which way CDEX stock price is going to trend. I believe the chances are 5 times greater it will go higher than $1.50, before it goes lower than .50 cents.
Why? Because you have to follow the big money player, and he paid 82 cents, with the right to buy more later.
Do I think Baxa got on board as "just" a spectator, no, I do not. I believe they will use their vast contacts to help push CDEX's products.
