Lockheed / Leidos Shenanigans

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Anonymous
Lockheed / Leidos Shenanigans 2016-08-14 02:43:35 Post No. 1442430
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Lockheed / Leidos Shenanigans Anonymous 2016-08-14 02:43:35 Post No. 1442430 [Report]

Anyone else have some stake in Lockheed Martin (LMT) and having a hard time deciding whether or not to tender your LMT shares to LDOS shares with that premium? The tender offer expires on Aug 16th, so I am nearly out of time to make my decision.

As of Friday's close LMT is at 264.15, LDOS is at 49.91. Also, prior to the conversion, LDOS holders get a $13.67 special dividend per share.
The news on the release says "Lockheed Martin Sets Final Exchange Ratio of 8.2136 for Exchange Offer". They're estimating a 7% premium on the shift provided LDOS doesn't drop between now and the 16th, and LMT doesn't rise too much.

I'm still trying to figure out what's going to happen to LMT shares after the conversion (up/down/neutral), and the same for LDOS. Because it seems to me like people are going to take their 7% premium, sell as soon as the markets open, and just move their money back to LMT taking their quick profit with them. Wouldn't that create a ton of selling pressure on LDOS causing a negative spike?

I'm relatively new to trading so I haven't encountered this type of thing before.

Anonymous 2016-08-14 03:05:47 Post No.1442449
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Anonymous 2016-08-14 03:05:47 Post No.1442449 [Report]

i will bump this thread

Anonymous 2016-08-14 03:21:56 Post No.1442466
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Anonymous 2016-08-14 03:21:56 Post No.1442466 [Report]

bumping as well. I'm interested to see how the markets going to react to this one.

Anonymous 2016-08-14 03:30:52 Post No.1442477
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Anonymous 2016-08-14 03:30:52 Post No.1442477 [Report]

I see 4 options for me as it is.
1)Do nothing, let my LMT sit as they are since they're one of my long-term holds w/ dividends
2) Take the offer, convert to LDOS, liquidate immediately to secure my % and go back into LMT,
3) Standby, if LDOS has a crazy drop after all the selling pressure from the offer takes place, buy in, let it return to normal, cash out and take my % that way
4) The worrier's way: Sell my LMT now, and wait until any drastic changes shake out and then rebuy my LMT.

Anonymous 2016-08-14 03:41:41 Post No.1442487
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Anonymous 2016-08-14 03:41:41 Post No.1442487 [Report]

What's the pro-rata? You might not get all of your shares off into the tender (kek)

Anonymous 2016-08-14 03:54:32 Post No.1442503
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Anonymous 2016-08-14 03:54:32 Post No.1442503 [Report]

>>1442487
I believe they're moving 9.1m LMT into their LDOS. That's true, they may have an overabundance of people wanting in on it. For the purposes of this thread, lets assume there's enough shares to move your whole order

Anonymous 2016-08-14 04:05:48 Post No.1442516
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Anonymous 2016-08-14 04:05:48 Post No.1442516 [Report]

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share offerings happen when the stock is overpriced so they can get it cheaper. the sp500 is a 2,200

bail, don't be an idiot

Anonymous 2016-08-14 21:18:41 Post No.1443501
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Anonymous 2016-08-14 21:18:41 Post No.1443501 [Report]

One bump before I let this die

I'm aware that Imgur.com will stop allowing adult images since 15th of May. I'm taking actions to backup as much data as possible. Read more on this topic here - https://archived.moe/talk/thread/1694/

I'm aware that Imgur.com will stop allowing adult images since 15th of May. I'm taking actions to backup as much data as possible.
Read more on this topic here - https://archived.moe/talk/thread/1694/