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OK, so we get bought out and we get .330969 shares of SONE for each share of EDFY. Today SONE closed at 50 1/8 and EDFY closed at 14 7/16. So if I do my math right EDFY should be valued at 16.92 (50 1/8 * .330969) This is a 17% premium from the current 14 7/16. I understand a few percentage points but this is huge. In other words if SONE does not move at all and the deal goes through, I make 17% on my money if I were to buy EDFY at today's price.

I called EDFY's investor relations trying to get an explanation of the discrepancy and he basically said "The market doesn't completely understand the deal yet." Well I am pretty new at buying stocks (only a couple years now) but even I can understand this.

I also asked if Edify felt there was any way the deal would not go through and he said they thought this was a great deal and that they were very excited about it and that all the institutional investors seemed pretty happy with the deal also. (What else are they going to say...) The board of directors and employees own about 15% of the stock and institutional investors own about 45%.

I have never shorted a stock, but I am thinking about shorting SONE and buying EDFY. Doesn't this lock in a 17% gain, assuming the deal goes through? It can't be that simple and I need someone to show me the error of my ways.

Thanks in advance.


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