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HDGabor

02/25/21 11:49 AM

#326773 RE: tke458 #326768

t-

My last paragraph told not have been clearer:

“That was his point. It’s never that simple though because if they didn’t issue the additional stock, all things being equal, the SP would be higher.”

Update: Sorry, my mistake did not scroll down

In other words, assuming AMRN didn’t issue as much stock as it did (and the share price was still at $7.3), $10B fetches a higher premium %.

You have the same approach as g-: the "per share" basis. Do you really think that with less share count the share price is the same? ...

Nope.

e.g. If Amarin would do a 10:1 reverse split the share price will not remain the same as it is now ... or do you think it will?

The share count or the pps does not matter but the Market Cap for the premium %, since the buyer will offer $ X ... premium % = ($ X / MC) - 1

Best,
G

rafunrafun

02/25/21 11:52 AM

#326776 RE: tke458 #326768

Pretty certain that GG had a brain fart - his post didn't make any sense and most of his posts are very rational.

# of shares is irrelevant. MC is all that matters. # of shares can be converted to any # (via a stock split) without having any effect on the MC.

You are buying a car for $10,000. Doesn't matter if you have one hundred $100 bills or ten thousand $1 bills.