With CIO it looks like it is a done deal after the company started the process to acquire some 7.5 million shares through Victory Park Capital Advisors this morning from investors who likely would have voted no on the proposed business combination. However the game changer is the news (read it here) that was released after hours about entering into agreements to purchase an aggregate of 2,821,857 ordinary shares in privately negotiated transactions for a purchase price of $28,218,570 from shareholders who otherwise intended to vote against the previously announced proposed acquisition of up to three insurance companies and $650.0 mln of assets of two unaffiliated families of hedge funds.
If the deals passes on Jan 19, 2010 without any wrinkles in structure of warrants, then the warrants will trade where they are supposed to be trading. As of today's close the intrinsic value is $2.10 (current price of $9.60 - Strike Price of $7.50) but they are trading at .68, which is way way undervalued. I do not think it is going to remain there for a while but will hit atleast $1.5 in the next few sessions (before Jan 19th)
Speculative play - I bought AEHI.OB at .17 today. I have had it on my watchlist since it was at .09 but never touched it since it was a Pink Sheet stock and also I was not that confident on it. Now that it just moved onto OTC exchange, which signals a positive trend and also based on the recent news releases, I see limited risk in this stock but if everything works out for this company then the upside is huge. My prediction is .34 to .40 in the near future.
About Alternate Energy Holdings, Inc. www.alternateenergyholdings.com develops and markets innovative clean energy sources. The company is the nation's only publicly traded independent nuclear power plant developer willing to build power plants in non-nuclear states. Other projects include Energy Neutral, which removes energy demands from homes and businesses www.energyneutralinc.com, Colorado Energy Park (nuclear and solar generation), and International Reactors, which assists developing countries with nuclear reactors for power generation, production of potable water and other suitable applications. AEHI China, headquartered in Beijing, develops joint ventures to produce nuclear plant components and consults on nuclear power. AEHI Korea is working to import the Korean advanced reactor to the US and find potential investors.
A general Caution and Advise -As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!