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Re: Enterprising Investor post# 9

Saturday, 06/08/2013 6:41:20 PM

Saturday, June 08, 2013 6:41:20 PM

Post# of 33
Interesting play here EI, nice. Have you valued the pieces after the spinoff?

Mallinckrodt at 10X last year's earnings would be $27.70.

Divide that 8 = $3.46 per current COV share.

Not much unlocked value being taken into account for in any of the outstanding options that's for sure.

I assume you know how the options will be treated after the spinoff. Using your $55 strike as an example, will that then equate into 100 shares of COV and 12.5 shares of Mallinckrodt per contract?



Twitter: @VincePagano