When will the Anheuser-Busch's (BUD) stock price rise to $70?

Question

I know the deal between inBev and Bud went through this past weekend but the stock price has yet to hit $70. In fact, the BUD stock has went down since. When can shareholders expect the price to jump to $70?

Answer 1

The close price yesterday(07/15/08) was 66.6 USD, and the expected completion date on the merger is not till the end of this year.  Based on that information I imagine the price will hoover around 67 - 68 and then in December go up to 69.75ish.  The only incentive a person would have to sell early would be to get cash sooner than later, and the only incentive for people to buy now would be to make 5% profit at the end of the year.  So most people who are trading BUD proly have alternative motivations...

Answer 2

it will be a very long time before this will happen, this day and time when two companies merge then the stocks will always go down look at past history in other companies that have been bought out, history always repeats itself.

Answer 3

The last few times BUD has gaped up, it has been about a $6 move upward. However each time it has gaped up it has consistently retraced back 38.2% This last gap up hasn't seen that retracement yet. Also bare in mind that it runs sideways 3-4 weeks before it gaps up again sometimes 5 weeks. This last gap upward is only a day old so you have at least 3 weeks before there is, IF any another gap up. If the pattern continues the retracement (38.2%) will bring it down around $65.05 to $65.09 It would then (if the pattern continues) run basicly sideways for another 3-4 weeks before another gap up. That would the put it a little over $70. So I think you're looking at a minimum of 6 weeks before it hits $70. Bare in mind too that much like fate, the market is a fickle b*tch.