AUSA is a wild and woolly penny stock trading at 0.28. But ALHC is buying AUSA in shares, 7.25 million of its common stock to be exact. Currently ALHC is trading at 0.95 a share which is a $6.89 million market cap. AUSA's market cap is $5.68 million and trading at about a 20% discount to ALHC.
The stock dropped on Friday on the expected buyout and is now arbitrage material.
I think these two companies have a very bright future due to the fact it is so cheap with limited debt compared to the blue chip variety and the impending insurance boom that I see happening in the US, much like the real estate boom, but more confusing to the layman, which is why we'll need service providers like these two.
This is a casino stock and requires much additional homework, but there is now a catalyst to owning it. Of course, ALHC share price can go down which would make AUSA an even lower priced stock. But if you have been watching the daily share action on it, it is not stable, both on the up and downside.
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