Replies to post #8010 on GTC Biotherapeutics (fka GTCB)

[exwannabe]

RE: Warrents and the B-S based payout.

This sounds kind of wrong to me (I mean wrong in the sence that the valuation will be too high).

The price premium paid for a buyout is mostly to pay as compensation for the future potential of the stock. And B-S is doing the same thing in its way.

But the B-S valuation in this case is calculated on the buyout price. Thus, the warrent holders get the "negotiated" payout for future benifit along with the calculated one from B-S.

IMHO, it would have made more sence to calculate the B-S value based on both volatility and price before the public announcement, and give the warrent holders the better of the two prices. MAX(B-S value, buyout price) - .87