I think I need to clarify my comments from earlier
Post# of 36568
(Total Views: 351)
Posted On: 11/18/2020 3:57:27 PM
I think I need to clarify my comments from earlier...
So, to be clear since I did get a couple of DMs regarding this, I am NOT stating I will sell NGIO on the first day of trading. However, if the public listing comes when we do not yet have any revenue to sustain the price, I MAY sell my NGIO shares. Afterall, they were a dividend with zero value initially. But I did say, if I sold, I may buy them back on a drop in share price. OR I may use the proceeds to buy many more GNBT shares the arbitrage works. For example, when company A buys company B, arbitragers will sell short one company and buy the other company, since the value of the purchase most likely is not already priced into the stock price of the other company. So as an example, if NGIO comes out at $4/share, theoretically GNBT would own about 360M shares at $4, so $1.44B. With 110M shares of GNBT, that would be $13.09/share added to GNBT. However GNBT will most likely not go up by $13/share initially. So if GNBT is at $6.50/share, I could buy twice as many shares of GNBT for the same value as my NGIO, and look for GNBT to go up as the value gets realized and I would make more money. Sorry, it's all about what is going to make more money when you are investing, so that is what arbitrage means.
So to be clear, I may, or may not, sell NGIO on the listing day. However if I do, I will, or will not, but looking to buy back into NGIO or GNBT, if GNBT is showing me a better value potential.
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Good post GMIN! And if NGIO ever goes public, which I'm counting on it, I may sell all my NGIO shares since the stock price will most likely tank initially. I can always buy them back. Or maybe use that money to play arbitrage with GNBT shares and buy many more GNBT before it pops on NGIO value
So, to be clear since I did get a couple of DMs regarding this, I am NOT stating I will sell NGIO on the first day of trading. However, if the public listing comes when we do not yet have any revenue to sustain the price, I MAY sell my NGIO shares. Afterall, they were a dividend with zero value initially. But I did say, if I sold, I may buy them back on a drop in share price. OR I may use the proceeds to buy many more GNBT shares the arbitrage works. For example, when company A buys company B, arbitragers will sell short one company and buy the other company, since the value of the purchase most likely is not already priced into the stock price of the other company. So as an example, if NGIO comes out at $4/share, theoretically GNBT would own about 360M shares at $4, so $1.44B. With 110M shares of GNBT, that would be $13.09/share added to GNBT. However GNBT will most likely not go up by $13/share initially. So if GNBT is at $6.50/share, I could buy twice as many shares of GNBT for the same value as my NGIO, and look for GNBT to go up as the value gets realized and I would make more money. Sorry, it's all about what is going to make more money when you are investing, so that is what arbitrage means.
So to be clear, I may, or may not, sell NGIO on the listing day. However if I do, I will, or will not, but looking to buy back into NGIO or GNBT, if GNBT is showing me a better value potential.
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(0)Generex Biotechnology Corp. (GNBTQ) Stock Research Links
Disclaimer: Of course, all of this is my opinion and you should not make any investment decisions based on my opinion. I have not received any non-public information.