Jun. 11 at 4:23 PM
$SSTK t’s obvious that many of you don’t fully understand the details of this merger. Everyone seems upset because they’re not getting the
$28.85 payday they were expecting. Do the math—even if you bought in at
$13.00, this deal appears heavily tilted against shareholders, and you could end up holding a large position in what amounts to a Getty penny stock.
The upfront terms of this deal are not favorable for investors who are deeply invested in the stock. Based on the proposed exchange, it works out to roughly
$9.50 in cash plus 9.17 shares of Getty. You might make a small profit if Getty is trading around
$0.70 and you can sell quickly enough, but that's far from the windfall many were expecting.
A reverse stock split will likely be necessary to prevent delisting after the merger, and there’s a good chance another one could be needed later if the stock continues to decline.
And for thosetaking the all-cash option, let me know how that works out when the election is oversubscribed!
