I think the fall we are seeing is a reaction to the Time Engineering deal. A lot of Time Engineering shareholders may throw the Time.Com share away when it gets into their hands as they got it for at least 20% discount with a floor at 48 cents. So, the selling may be a reaction to this in anticipation to the selling by Time Engineering people.

Short term wise, it bound to have an impact. TEB do not have much institutional shareholder. Most are individual, taking out the stake by UEM in TEB, if I remember correctly as I check it last week, assuming that half the other individual investor sell their TIMECOM share, there are about 5-6 days of supply of TIMECOM share coming onto the market based on recent trading volume. People won't hold onto it because they have at least 20% discount with a floor at 48 cents, they will just sell to get the difference.

Another potential is actually that it will unlock the value of TEB. It may accidentally create a cheap TEB, but, I check a few days ago, it does not seem to be the case. TEB is incapable of securing any jobs without government help.

It is better to sell TIMECOM now then wait to grab later when people looking to sell. The risk is that TIMECOM may go up a lot from now on if they announce some sort of super good news and the share price, even after the selloff later will be much higher than the price you are selling now. We are already seeing some sell off early on this week as I mention previously in another post. People are already doing that.

This post has been edited by the snowball: Jan 28 2011, 12:35 PM