quote:Originally posted by jump'em&pump'em: How can the MM's screw with this this hard? For the last 5 days we have listened to people talk about how when the merger/buy out is announced that they won't be able to hold this back and the MM's are gonna be screwed because they are so short....news is out and we don't see anything of the nature, WHY?
Key word "listened to people". You gotta do your own DD. Like I've been telling people the whole time make sure you are riding "free" shares, like me.
Always protect your capital and take a little profit to keep you in the game.
-------------------- I buy fast and sell faster!
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posted
Deleet, I think that is correct. What that means to the JPHC holders I think is as follows:
If you bought in at .0014 which would be the top today, you'd have to sell your APO shares for .00336 to breakeven, which is 72% down from where it's trading today.
If you bought at .12 you could withstand a 76% loss from APO
If you bought at .001 you could withstand an 80% loss.
Also, if you sold in the morning at, say .008, if you bought at:
.0014 you'd lose 43%. In order to lose 43% if you held until the merger, APO would have to be trading at less than .0019, or down 84%
etc etc for other entry points.
I have no experience with any of this, so I don't know how likely any of these are, but it seems like there's at least a decent chance that people's losses won't be completely crippling, and if APO manages to stay above 28% of today's value, people will still make money.
As far as I can tell, the ONLY way you are guaranteed to lose money is if you sell before the merger.
Anyone have a different take on it?
quote:Originally posted by deleet: hmmm, ok let me get this straight.
Each share of JPHC will be worth about 0.005 on May 10th, but instead of cash they're paying us in shares of APOA?
So if you had 1,000,000 shares of JPHC, thats 1,000,000 x 0.005 = $5000 worth of APOA
APOA is 0.012 right now, so if it was that much on May 10th, itd be $5000 / 0.012 = 416,667 shares of APOA
so basically, on May 10th we get around half a million shares of APOA to sell for every million shares of JPHC we own?
posted
APOA could have at least had the decency to buy and sell at least 50M of it's own shares to give the small illusion of volume before the aquisition PR. I think that's what is killing this. Wee will get an equal number of shares dollar wise for a company that is currently trading over .01, great. It's still pretty tough to sell what no one is buying. Hell, Hawkins should have bought a bunch of APOA if he is that concerned about share holder value. I think to many people are woried about the value of this new company, after seeing thae market reaction it would be in their (or our, so i'm selfish) best interest to do a retraction and make a cash tender offer to shareholders for less than .005. I bet we would be all over it.
-------------------- If ignorance is bliss, why aren't more people happy?
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posted
PCola77 perfect. The only thing you forgot to mention was if JPHC goes up to meet some of the difference then peeps could get out if they wanted.
As for me, I'm planning on holding free through the transfer/exchange and all.
Good luck and enjoy the game.
I had a great experience with IWNN --> IWNE and even sold out early for a gain. That was fun, except missing the extra .75c every share 5 mins later.
Rock of the Marne!!!
-------------------- I buy fast and sell faster!
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posted
Repo, Like i said, I'm new to this but my guess is that they'd have to announce before the merger if the shares are restricted or not. If they announce that they are, then you have to make the decision to sell your JPHC shares at the current price or risk holding APO for however long they're restricted.
I honestly think the worst time to sell would be tomorrow. My bet is that all the other options will end up being better in the long run.
quote:Originally posted by Repoman75: PCola, you hit on the head... BUT, what if shares are restricted? Then we have to hope for a favorable scenario 1 year later!
quote:Originally posted by Repoman75: Unless APOA comes out with great PR's in the next week about contracts, inventions, the cure for AIDS, we're fooked in my opinion.
"Fooked" as in fried and cooked.
-------------------- If ignorance is bliss, why aren't more people happy?
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posted
actually if you read the letter they basically just bought JPHC for Macrosouth. i bet APOA drops the medical #*^% and rolls with Macrosouth which is a solid business. I think what we are gonna see is a change in business strategy by APOA hence the chance in company name and ticker. Dont think that your holding a company that is the medical field, this purchase was specifically for macrosouth.
"APO is making a shift in its business future and JUPITER, and primarily its subsidiary, Macro Communications, Inc. (www.macrosouth.com), presented the best opportunity for us to build a significant operation under a new direction for our shareholders."
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posted
News Falsh: JPHC and APOA merge and change their symbol to JAFP. Just Another F***ing Pink. I am so pissed right now, I was looking at 14 the other day but I was just to greedy to only double my money, I should know by now.
-------------------- If ignorance is bliss, why aren't more people happy?
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posted
I am new to this but I think that APOA's volume hurt us but if you look their volume is now growing. Their volume will be sufficient when ours coverts to theirs! I think that it will be okay and there is still a profit to be made!
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Dogcatcher just admitted on RB that this stock was a good "trade" for people who bought around .0003's... basically calling us morons for holding this long.
-------------------- Stick with Repo's plan in '07 - FRPT/DKAM!
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about a million dollar loss in 2004. Not THAT bad, with some finesse and maybe a new business plan it might see green. I think tomorrow is gonna be a nightmare but this actually might not be as bad of a play as we think it is. Id much rather see Macrosouth leading the change than anything else.
-------------------- drummer. rock and cash all that matter.
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After a company announces an intent to acquire another, the price of the target company's stock predictably goes up, although usually not to the full offering price. Instead, because of the risk of the deal not closing on time or at all, the target company's stock will sell at a discount to its value at the merger's closing, this discount increasing with the expected length of time until closing and the perceived risk of the deal. (In the SBC-Pacific Telecom merger, West Broadway got in at an approximately 5 percent discount, or "spread," two months before closing.) The merger arbitrageur seeks to lock in this spread. When the offer is a cash offer, the arbitrageur merely has to buy the stock of the target in order to do this. However, when the offer is a trade of securities, like in the SBC-Pacific Telecom merger, the investor must also hedge against the possibility of the acquirer's stock falling. He does this by selling the acquirer's stock short.
Consider a hypothetical stock-for-stock transaction in which Company A, with stock trading at $105, offers one share of its stock for each share of Company B stock, currently trading at $80. An investor looking to create an arbitrage profit would buy Company B stock at, say, $100, the price to which it climbed immediately after the merger announcement, and sell short Company A stock at $105 in an amount equal to the exchange ratio - in this case 1-to-1. (Actually, in some instances, particularly in megamergers, the acquirer's stock price usually drops somewhat immediately after the announcement, as shorting pressure pulls down the price; but for this example we'll keep it at $105.) As the merger date draws nearer, this $5 spread will narrow as the prices of Company B and Company A stocks converge. When the spread narrows, the investor's returns grow - for example, if Company B stock rises to $101 and Company A falls to $104, the investor earns $1 on the long investment and $1 on the short.
Once the merger is consummated and Company B stock is converted to Company A shares, the investor locks in the $5 gain regardless of the current price of Company A stock. (His Company B shares are converted into Company A shares, which he delivers to cover his short sale of Company A shares at $105.) If during the interim the market has tumbled, sending Company A stock down to $80, the investor makes $25 on the short sale of Company A stock at $105 minus the loss of $20 on the Company B shares for which he paid $100. (Though if a market downturn causes Company A stock to fall significantly before the merger closes, Company B might back out of the deal; as a cover against a market downturn, some fund managers supplement their merger arbitrage investments with put options on the S&P Index, which enable the manager to lock in a sell price in the event the index craters.) In this way, the investment is buffered from violent market swings.
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My take after just talking to shareholder services!!! As per the news today our shares will be worth .005. These shares will be restricted for 1 year after May 10th. The guy I spoke to said there is about 50% of people who are willing to hold this for that year.. He also stated that there is possibly a large short position here in which has to be covered by the close of May 10th. I get the impression alot of shares will have to be bought because the shares must be accounted for. I think thats why we ran a little bit. Also we sold off a little, due to daytraders as well. I think we go up from here, maybe a dip. Bottom line is you can make 500% on your money if willing to hold for a year!!
-------------------- Stick with Repo's plan in '07 - FRPT/DKAM!
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posted
As consideration in the merger transaction, APO has agreed to exchange shares of its common stock ("the Issuable Shares") with JUPITER's shareholders at an exchange ratio,
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with JUPITER's shareholders at an exchange ratio, 
