This company was losing money and then somebody all the sudden wants to buy them out for double their share price? What's up with that? And then 16 million shares are bought for that new price or near it? What's up with that? This company was supposedly saddled with subprime mortgages that were defaulting! That whole REIT residential industry was supposed to be hurting! So I take it, to move the market, you just get somebody to say they want to buy your company for double the price at beginning of day and offer your stock for double on the market showing a spike in your graph and millions flock to it? Is the market today that mad? I could see buying it at $2.60 per share the day before on rumors it was gonna double, but after it doubled, buy it?
2007-02-18 00:56:42 · 1 answers · asked by Anonymous in Business & Finance ➔ Investing
The buyout price is $5.53. Fridays high was $5.18 so people saw they could still make money (if the buyout goes through). You asked "Is the market today that mad?" In some cases, yep, just as mad as it was for tech 7 years ago. Hedge, buyout firms, etc. have a lot of money "burning a hole in their pockets."
2007-02-18 04:00:20 · answer #1 · answered by gosh137 6 · 0⤊ 0⤋