Originally Posted by
Stayontarget
That would be an insane amount of money per share but I’ll use your example as an institutional shareholder. Let’s say 1 million shares at a DCA of $35. Fairly reasonable number and no need to go wild at $80. Today the price is rounded down $20. So just to break even, the institutional shareholder would need to buy another 500k shares. Further tying up 10 million dollars to hopefully get paid out when the deal goes through. Just to break even. No matter the scale, this is not a superior offer if your DCA is higher than $30 a share.
As to your second part. Ya it had better be a better product since it costs more. But that doesn’t mean the growth potential is the same.
it would take 100k just to break even at $30. You’d have to buy an additional 5000 shares. No one in their right mind would do this.