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petermic

07/21/06 5:41 PM

#7769 RE: xlr8rs #7764

Hypothetically - say CVSU is worth $1 billion and FHAL is worth nothing. Say they both have 50 million shares.

So CVSU shares are worth $20 each and FHAL shares are worth nothing. When they merge, the FHAL shares are worth $10.

So CVSU shareholders traded $20 shares in for $10 shares.

It's that simple.

People should stop calling me an idiot, since I know much more about this than most of you. I have an MBA in Finance and Accounting, worked in Mergers and Acquisitions in NYC. Been trading for myself for 10 years.

LISTEN PEOPLE - you can make money if there is someone else who will pay more for the stock, but the clock is ticking on that strategy.