Aug. 5 at 4:08 AM
$PSNL With
$PSNL no longer expected to report standalone earnings because of the pending merger with Tempus AI, I’m struggling to understand why the stock is still trading at such a substantial discount to the announced transaction value.
As I understand it, Tempus has the option to pay up to 50% of the consideration in cash, with the remainder paid in
$TEM shares based on the merger terms. So what am I missing here?
To me, it appears there could be a favorable setup if the transaction closes as expected, but the market is clearly pricing in risks that I’m trying to better understand. Is it merger uncertainty, the floating exchange ratio,
$TEM , regulatory risk, which does not seem to be on anyone’s bingo card?
I am in the camp that when I added today, this could this end up being one of the last opportunities to buy the dip before the market reprices the stock and we make the shorts cover.
Curious to hear everyone’s thoughts. This is not investment advice.
