Don’t want to sell the company do they ....hang in there long term adding shareholder value as they go
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Don’t want to sell the company do they ....hang in there long term adding shareholder value as they go
Not surprising they have rebuffed them, as SOA was at $5.70 previously, was accepted and come back a couple of months later at much lower price, post C19. Just now how much existing holders will like having to pony up something close to the current market cap in a capital raise! :scared:
This has dropped significantly over the last week, and looking at the release that may have caused it, there is nothing too bad in there.. It says we wont accept the low ball offer and will look at other funding options, but then it also says business is picking up very well.. yet it has dropped nearly 30%. I think this could be the 'bottom' and it returns to some form of normal around 3.00, which is a ~17% higher than today's price.. Anyone else have some thoughts? similar or to the contrary?
If you think the new normal is around 3 bucks go for it
But their financial performance over recent years speaks for itself and is reflected in what’s happened to the share price
Take on (acquire) more practices for diminishing returns seems to be their modus operandi
That puts me off them
Share price going well today ...hope you on board and not missing out.
Also the prospect of a capital raise.....which is near enough to the current market cap....;)
Sales growth gradually declining .... margins steadily declining .....diminishing returns on invested capital .... and as returns way below cost of covering cost of capital they are destroying economic value (value destrucyion in high finance)
That's why i find it hard to turn interest into real enthusiasm
Complexities are added to the scenario when you try investing in companies like ABA which are in the periaquisition timeline. Some had hopes of re-takeover offer being brought back to the plate probably, and with the contrary being recently suggested that might sway against the thoughts of some big holders.
Furthermore, you need to ask yourself how you're landing on your value of $3. How the market prices this isn't always going to correlate with historical prices. $3 could be a huge bargain or a overpriced value - I hope you aren't just looking at a gap on the chart and making a conclusion based on that (unless you like TA short-term trading which is heavily dependent on general market direction which isn't too great right now, if you were hoping for a gap fill play which tends to be led by a strong healthy uptrending market).
Growth in companies like ABA over time is also complicated and it's not a simple business structure.
ABA only good for short term trades I reckon ....taking the odd punt here and there.
I’ve mentioned why financials say not worth much. The chart also says why bother unless you are punter
ABA ...diminishing financial returns on capital ....and diminishing returns for share holders it seems
But heck ssbn go for it if you feel lucky......I have to keep telling myself NO NO winner not an ‘investment ‘ and punting for a quick buck ABA don’t appeal
Cadalac .... periaquisition is an interesting word