PGYC in Pinksheets… http://www.google.com/finance?q=OTC:PGYC I don’t like bringing analysis of googleboards onto AF but this one stands out like a sore thumb and has to be the most volatile ever. Anybody care to share their opinion about a stock that is trading at a 95% discount to its proposed acquisition price. I’m dumbfounded. I know pinksheets come with little information and regulation but this thing seems like a paperchase. ~disclosure: no money invested but a return of 1600% if they actually do get taken over, crazy. its more funny than anything.
I’d guess it’s trading at such a discount because investors don’t think the takeover is actually going to happen? That’s my only guess, but I haven’t been following this at all. http://finance.yahoo.com/news/Patriot-Energy-Corporation-iw-15326863.html
why wouldn’t it go through if management is recommending a tender and shareholders could buy stock today and tender for the 1600% profit. is there anywhere to tell who the majority shareholders are? and if there were majority shareholders, wouldn’t management have private discussions with them to ensure they’re on board with the transaction or at least comment that they are a majority shareholder? i mean, i’ve seen stocks trade at a discount to an offer b/c of doubt, but this seems as if investors are ignorant to the deal as a whole. basically, you could buy now, make 800%, and the stock would still trade at a discount of 50%, which is still insanely steep.
The whole thing looks pretty shady to me. A tangled web of PR firms, he-said she-saids and the like. There is clearly a group of shareholders opposed to the deal - do you know how much voting power they have? Enough to block it? I admit that if it’s a legit offer and it goes through then the return could be spectacular, but there is also tremendous risk. This is sort of like going to Vegas for the weekend. My approach to buying, if I were to do so, would be to treat it as a binary event and assume I get taken out of the stock at the deal price or I lose everything. So maybe I’ll put a couple of bucks on it like I would one of the longshots at the Belmont in a couple of weeks.
total pump and dump. the balance sheet shows 15k in cash…no sales… tobias has a good way of looking at it, but, unfortunately, some boiler room operation is trying to get some money and the company is worth nothing… besides, the tender offer had a record date of may 22…
its hilarious. i’ve never really looked at the pinksheet/otc market before so seeing this was like seeing something out of a movie. no b/s. no shareholder info. no anything. just news releases with spelling mistakes. haha. thanks for humouring me though guys 
with a 1600% return, how are they supposed to be taken seriously? bizarre. how is this kind of stuff not illegal. and the ceo has been involved with pump+dumps at multiple companies, so one source says. bizarre.