Warrants are TOAST ... written only as collateral against the LOAN
the LOAN plus $50 BILLION INTEREST has been REPAID ! ...
AIG case ruled GOVT illegal to take STOCK in ADDITION to LOAN + Interest ... :-)
I particularly like Patswil's price estimate of $161 ... :-)
Patswil Monday, 05/30/16 07:00:11 AM Re: rekcusdoo post# 340859 Post # 340861 of 341009 Go
$11Bill Rev/1.16 bill shares X 17 P/E= $161.00
Of course this doesn’t take into consideration any subsequent PENALTIES $40/share….perhaps after a 4/1 forward split–warrants are invalid= the biggest variable is what the P/E should be P/E is variable—floating target===could be a lot higher–like 40
Net income/outstanding shares * P/E multiple==PPS thus 11/1.16*40===PPS of $379.00
PPS should be $379.00 $11bill/1.16X P/E 40==$379.00 [/color]
So treble damages—-=$483/pps…that’s with P/E of 17===could be higher–A LOT===think like TRUMP—not only do we have TBTF screwing us–now it’s confirmed that accounting Fraud screwed us too–Un-F*****ng believable–Deloite will probably go the way of Price Waterhouse–IMPLOSION. ..the sky is the limit as far as the PPS is concerned
Where did Ackman's 9bil sharecount come from then? If gvt owns warrants for 80% of shares after exercising, then that would multiply the current share count by 5 if they were exercised. That would be a total of well short of 9 billion shares. I haven't seen his presentation in a while. I would think the shortfall still couldn't be explained by any kind of options compensation to executives, for example.
You believe that because the warrants would dilute the share price by 1/5, that if they were invalidated, the share price would go up by 5x.
That is NOT how warrants work.
The way it works, if the warrants are exercised, only then would the pps dilute by 1/5. Invalidating them before they are exercised will have very little effect on the pps.
News 
Market Data 
Discover 
AI
