Replies to post #710 on Optionable Inc fka OPBL

[Beylerbeyi]

They can only buy up to a certain point
1. Price will raise ver fast
2. There will be no share to buy

[algol]

This is a buyout rumor, and it is about NYMEX owning OPBL and the OPEX platform it offers.
Here is some math:
NYMEX currently owns 10.76MM shares of OPBL, which is 20.6% of the O/S (52.26MM shares), so they already have a big stake in the company. A buyout offer of $4.3 per share translates into $225MM, which will cost NYMEX – a company with a market cap of 11.57BB – about $178MM (since they already own 20.6% of OPBL).

Currently, OPBL has an EPS of $0.24, with projected EPS for 2008 of $0.31. So, say it is $0.25 now. An offer of $4.3 per share translates into a P/E of about 17, which is very reasonable IMHO!

BTW, the float of OPBL is about 18MM shares, which is 34% of the O/S. Most people bought these shares at a buck or higher, so whoever wanted to sell for a loss for tax purposes already did. So, those people who bought 7-8 months ago are unlikely to sell for under a $1, to break even at least.

I think the prospects of this investment are good, and I am in.
Let us see how the buyout rumor unfolds.

Cargo, can you comment on all of the above?

GLTA!