So did the bot buy 255 at 1250 and then straight away sell them for 1225
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So did the bot buy 255 at 1250 and then straight away sell them for 1225
Both both stocks about 9 days ago, both below $11, definitely not selling. Long term hold, like all my other stocks.
Whats going on? These rises not normal. takeover play or some big deal about to be announced?
Multi-choice for you tonight
A. Company reports on 19 September...investors positioning themselves ?
B. Share price playing catch up with ATM ?
C. Investors struggling to find a company with a more compelling and clearly defined growth plan at a half reasonable PE multiple ?
D. All of or some combination of the above ?
E. Stock in play ?
Okay I will do some wild speculation
ATM a nine billion dollar company.
Cost to takeover the 84% of Synlait it doesn't already own at a ~ 30% premium to today's closing price, say $16 a share = $2.39 billion.
From an investment banking perspective this looks like a deal that's quite plausible. ATM could undertake a placement and debt raising and / or a partial scrip based takeover and / or debt funding from banks.
The deal would probably fund itself on FY20 earnings from Synlait and be EPS accretive thereafter. It would also allow ATM over time to direct as much of Synlait's production as it wanted to its own purposes as Synlait's supply contracts to other infant formula companies ran their course.
Looks logical enough but good luck getting the Chinese to sell and minimoke and I.
Suppose it doesn't matter if they don't get to 100%, as long as they get control !
Time for a wee tipple to celebrate a good day.
Intersting day tomorrow. ASX closed SML down and ATM up