How many CEO's does it take to sell a company?
Jaguar Mining (JAG) dropped like a chunk of gold in a slurry today, on the news the CEO resigned. So how many CEO's does it take for a company to accept a buyout offer such as the $9.20/share offer on the table for JAG? I have no executive experience, but I'm 99% sure that I could accept a buyout offer if they made me CEO tomorrow. $9.20/share. Done. Money in the bank (or better yet, under the mattress). So why did JAG close at $6.56?
Time for some wild, baseless speculation.
It seems the market has either A) completely lost its grip on reality; or B) decided that the CEO resigned because the company is too wracked with fraud to close the deal with regulators and auditors watching, and the end is near. I'm not going to hazard a guess which, but a straddle or strangle strategy might be worth looking into here, to profit from either eventuality.