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Re: All2kool post# 2024

Wednesday, 07/24/2013 1:52:37 PM

Wednesday, July 24, 2013 1:52:37 PM

Post# of 2797
Whether the offer be in shares of the buying company or cash, once it's announced in a PR, OCZ will trade near the buyout price until the deal is finalized. Because it's not a done deal and time is money, the stock will trade slightly under the buyout price until it is finalized.

I'd recommend selling your shares of OCZ prior to the deal being finalized. That way you can get your cash and move on to your next investment. The only possible drawback to that is if there's a second offer from another company (a bidding war). That's rare, and it's also possible that a deal might not go through. So to get my cash, I sell on the news.

If it is a stock deal, and you want shares in the buying company, you can wait for the deal to be finalized. Your broker will notify you that you need to tender your shares in order to receive the new shares. Then once the deal has been completed, the new shares of the buying company will be in your account.

Now...all we need is the buyout!

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