Why is countrywide stock trading below the agreed purchase price of about $7/share by B of A?
Answers: Countrywide holders are to recieve 0.1822 shares of Bank of America stock. Therefore, when BAC's stock declines, the value of CFC's shares declines. Currently the deal values shares at $6.73. There also is a discount factored in, as BAC could potentially back out of the contract should management receive new information that fundamentally changes what BAC had expected. It is probably also being taken down by the news out of ABK today, along with the broader market declines. Basically, the more the credit problems worsen, the less likely BAC will follow through with its plan to purchase CFC, and shares are being discounted accordingly. I hope this helped.
Best of luck!
Brendan Prewitt
President, New York Capital Investment Group LLC
because the sale may not go through at all, or the terms of the deal may adjust. And judging by the current trading price, most investors believe that the price WILL change. What this means is that during the due diligence, the time leading up to the transaction closing, BofA may find material information that was not declared prior to their offer, which will allow them to walk, or re-offer. This is not common. At least, usually only immaterial dollar amounts differ at closing from the original offer, in most acquisitions. However, this is far from a normal case.
The stock will stop trading once the deal is imminent.
How do I write past its sell-by date a big stock flea market loss?
Hi all. I'll engineer this story short. I got over-involved in the .com stock open market boom of 2000 I sunk my entire life hoard at the time ($26,000) in stocks taking a honourable friend's advise. Eversinse consequently I've seen my money evaporate and finally sold the stocks I salaried that much money for about $6,000 ending August.I have never taken any writeoffs when doinf my taxes, but I guess this will be my first time. How can I progress about doing this? I hear that you can solely claim $3,000 a year for 5 years. I would take roughly 6.5 years to claim the entire 20,000 loss.
Also can I contact my broker TD Waterhose to please give me proof I rewarded that much? I moved and lost the original papers years ago. Thanks.
Answers: Hi,
You stipulation to see the following link:
http://www.bankrate.com/brm/itax/edit/ne...
Regards
you can with the sole purpose claim 3000 but for as long as it takes to claim the total loss(and solely against income). And yes you can contact your broker. They have the paperwork
Will citigroups stock recover?
Answers: In a few months, the problems will be a distant memory and the stock will soar again.
Yes.