Question concerning acquisition!!

Discussion in 'Learn how to trade or invest by asking questions' started by Shaun Harrison, Jan 26, 2017.

  1. Shaun Harrison

    Shaun Harrison New Member

    I'm new to trading and have a question concerning an acquisition. The stock I own ERF wireless announced last week they "signed a definitive agreement under which ERF will acquire 100% equity interests in Accordant for 14,000,000 shares of ERF Rule 144 restricted common stock valued at $1.00 per share in an all-stock deal valued at $14 million."

    My stock price for ERF has dropped from 0.016 to 0.011 since the announcement. I would like to heard thoughts on the verbiage of the acquisition and what I may see for the future. Both companies are wireless providers. All input is appreciated. Thanks. Shaun

    Here is a link to the announcement:
    https://www.google.com/amp/s/www.ya...t-communications-130000083.html?client=safari
     
  2. Acstudio

    Acstudio Well-Known Member won penny contest 44x won weekly contest 40x won weekly contest 41x simulator winner 20x

    Ye the actual ticker is ERFB...use that next time and save us a step. It's an OTC Pink so you never know what's going on with these guys. But the price is what's telling you what the news is...in other words , you don't really need to understand anything about a company's information, you just need to look at the price.
     
  3. ineedupticks

    ineedupticks Member won penny contest 2x won weekly contest 2x

    Whenever there's an acquisition, the co making the buy always drops and the co being bought tends to jump near whatever the buyout price is (usually slightly under, sometimes even over; if you don't mind the risk of the buyout not happening you can usually buy it as an arbitrage opportunity and make the difference)
     
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