efficent market at its best?

bingopitts — Mon, 02 Apr 2007 19:12:50 -0400

Last Dec WLT spun off about 86 mill shares of MWA class B stock. Last May WLT craved out 25 mill shares of MWA in an IPO at 16.00

Today, MWA goes fot 13.56 and MWA/B goes for 13.25.

Both have identical rights EXCEPT that MWA/b has 8 votes to 1 for MWA.

By all rights, MWA/B is the superior stock of the two. It has 8 times the voting power with more liquidity.

Since both shares have been trading, MWA trades more shares, and is priced higher than MWA/B.

I know there still might be post spin selling in MWA/B. But this does not explain why anybody would buy MWA over MWA/B. But that has been the case so far.

So far the efficent market is losing.

Thanks

Geoff — Mon, 13 Nov 2006 19:05:53 -0500

I'm really happy with this week's festival. It's a good group. I think you'll enjoy it.

Great FoS

Jason — Mon, 13 Nov 2006 15:44:14 -0500

Nice collaboration Geoff. I look forward to the lite reading this evening.

Value Investing News - WLT - Comments

efficent market at its best?

Thanks

Great FoS