Gerova Financial Group (NYSE AMEX:GFC)

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Tuesday, January 19, 2010

Blank Check Activity

We are still awaiting the outcome of the vote results for the proposed business combination by Asia Special Si Acquisition. Investors should take note that the proposed business combination is not with an Asian firm. We still think there is risk with regards to the warrant strategy if investors don't see great growth potential in the core business and drive the common stock down. Also, the businesses targeted by CIO generally do no carry high valuation multiples.

Hello Venkata,I think there are a few reasons:1. Investors likely realized that this was not a transaction with a Chinese firm.2. The new business is an unexciting one that is characterized by low PE's. This could limit price appreciation of the common which in turn is bad for the warrants.... (more)

whitetiger, Friday, January 29, 2010

Why is CIO and its warrants down big time after the aquisition happened successfully? I know there is some dilutation but what's wrong with warrants? Thanks for your comments in advance!

Venkata, Monday, January 25, 2010