Question
i am looking for help on a case. the questions are posted but when i look at the rest of the documents there are no
i am looking for help on a case. the questions are posted but when i look at the rest of the documents there are no answers.
1. Evaluate Melnyk's strategy. What are the objectives? What would you do if you were in his situation, prior to the lawsuit?
2. How do investors gather information about companies like Biovail? What are the sources? How does this information get into stock prices?
3. What are the allegations? How should SAC respond in this situation? Should they change their investment strategy going forward? How should Gradient Analytics respond? Should they change their approach in the future?
4. Suppose you have a firm conviction that Biovail is 10% overvalued today, i.e., the present value of their future equity cash flows is less than the firm's market value. Would you take a short position in the stock?
5. What are the implications of short sales constraints for stock prices?
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