They either are long term holders of WRM and don't want to lose their 12 month capital gains discount by selling their WRM to buy AUL, OR they more likely don't have the time to analyse the merger by contacting both managements, the major shareholders to learn their histories in each of the two company's, or to follow the MD&A commentary by these relevant parties which to me projects as resounding support by all of the above for the merger to go through.
In short - they haven't done the merger analysis to feel comfortable enough to invest in AUL at a cheaper price with risk of merger falling through, much rather preferring the zero risk of negative merger catalyst via WRM entry.
Meanwhile $4M raising for AUL meant many sophs jumped onboard for this entry into WRM, not to mention Gregory Dillon who has hoovered up 7% of the registry since CR date 6 weeks ago (perhaps one who has done his research and sees what many of us see, myself,
@Wack,
@WhackyWolly (Hedgeless Horseman) etc all using AUL to gain leverage into an even bigger WRM position.
Not to mention Crescat Capital who own 5% of AUL.
A further note on this to explain the sophisticated investors buying big and retail not liking the merger, is that AUL retail noise is particularly negative. In fact I've never seen such negative noise come from an ex-shareholder base such as AUL and their persistence to stick around in forums 2-4 quarters after exiting the stock, it's quite astounding. Misery loves company.
This has undisputedly caused angst amongst those even beginning to look at a leveraged cheaper entry into WRM via AUL for RETAIL holders which in turn dont buy/OR sell straight into the institutional investors who are hoovering up shares. Usually how it works in the markets, but someone has to sell you your shares at the bottom and unfortunately usually its the mum and dads.... who in turn also then buy your shares back at the top.
There is a reason its called smart money and dumb money.
So, while long winded, I believe its a combination of the above as to why more aren't seeing what many of us are seeing. Although perhaps that has been a blessing, after 120-150 hours of research on this one its been great to buy the amount that I did at the price that I did while rubbing shoulders with investors much smarter than I who were doing the same. Hope that helps answers your question.
Certainly not financial advice, please DYOR, and GLTAH.
