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Title: ONR and PSN Post by: bryanmcn on November 04, 2011, 10:48:04 AM SSP
Can you tell us if this will affect the portfolio and the Buy / Sell recommends for ONR? Pursuant to the Arrangement, former shareholders of Open Range will receive one common share of the post-Arrangement Open Range ("New Open Range") and 0.8839 of a common share of Poseidon Concepts Corp. ("Poseidon") for each Open Range common share. The New Open Range common shares (TSX:ONR) and the Poseidon common shares (TSX:PSN) are expected to commence trading on the Toronto Stock Exchange on or about November 4, 2011. Title: Re: ONR and PSN Post by: Super Stock Picker on November 04, 2011, 11:31:03 AM Hi Bryanmcn,
We will manage this financial operation like a dividend payout for ONR. So, for people holding this new stock, they should sell it. Also, following this operation, ONR will become a sell for our algorithm as well. So, basically, it means sell both. Title: Re: ONR and PSN Post by: Super Stock Picker on November 05, 2011, 01:23:37 AM Actually, the dividend received in this operation is equal to 10.18.
In the case of a dividend, we usually subtract it from the buy price of the stock. But, in this case, the dividend amount is higher that the price we bought the stock at. So, we will instead add the price of this dividend to the value of the ONR stock and use that equivalent price to calculate the sell price. |