Why sit back and wait, you can get a bigger slice of MIS now before the merger?
Firstly I believe the merge would be good for the future of both companies and shareholders without a doubt, but I just can't help but feel our investments have been undervalued by the company.
Say I have 10000 MMX shares and the merge was approved to go through say next week, and based on today’s closing prices MMX= 4.23 and MIS= 7.03. As an investor I could have sold my 10000 MMX for $42300 and brought 6017 MIS shares or wait until next week and get just 5750 MIS shares in the merge.
Now I am only a small holder and cannot see how any of the bigger and smarter investors (I am really dumb) did not see this and reacted to it to gain a bigger slice of MIS shares at no extra cost. The only thing that stopped me reacting to my gut instinct (and yes I have a big gut) yesterday after doing some quick calculations when MMX shares hit $4.66 was that the share price had increased after the announcement, Why? shouldn't it have dropped?.
I am fully aware the SP and value of the new merged company would be unbelievable but this is not my point. MMX share holders should be getting better value for their investment in MMX now and then share the benefits with MIS when and if the merger happens. It does not matter how good the merged company is going to be, you could sell your MMX shares now and get a bigger slice of MIS at no extra cost (or loss) rather than wait for the 0.575 split (yes I believe it will get the green light)
Can the bigger/smarter investors see a better offer coming, if not why didn’t they sell MMX and gain a bigger slice of MIS now before the merger happens?
MMX Price at posting:
0.0¢ Sentiment: None Disclosure: Held
