We are all adverse to LYC being taken over "Cheaply". However I believe if anyone attempts to take over LYC, it will be done for STRATEGIC RATIONALE not ECONOMIC RATIONAL. It may be a private company but it will be funded by very cheap government money. Japan has almost zero interest rates, the US are about 0.75%. and ECB are almost zero. Once they have made a decision to buy they would get it done uninhibited by economic rationale and fancy NPV models. This means a substantial premium would be paid to secure 100% control (and it would have to be 100%!). So what would they pay? Well my guess, and it is just a guess, is that they would be prepared to pay somewhere between A$2 - 3b. This translates into a price of A$0.28 - A$0.42. If we take a midpoint, the price would be A$0.35. Now this may look high by itself but comparing it to my LYC NPV calculation of A$0.53 puts it in a different perspective. Curiously A$0.35 is almost midway between the current Share Price of A$0.15 and the NPV of A$0.53 so it sort of feels about right. So this new corporate valuation technique of FOR ("feels about right") is the best I can do. Maybe somebody else has a better valuation methodology.
- Forums
- ASX - By Stock
- LYC
- LYC - a takeover theory
LYC - a takeover theory, page-19
-
-
- There are more pages in this discussion • 14 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add LYC (ASX) to my watchlist
|
|||||
Last
$6.56 |
Change
0.050(0.77%) |
Mkt cap ! $6.131B |
Open | High | Low | Value | Volume |
$6.51 | $6.59 | $6.49 | $8.348M | 1.273M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
4 | 16304 | $6.55 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$6.56 | 2708 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 2000 | 6.550 |
1 | 100 | 6.540 |
1 | 10000 | 6.510 |
3 | 5500 | 6.500 |
2 | 5330 | 6.480 |
Price($) | Vol. | No. |
---|---|---|
6.570 | 24700 | 3 |
6.590 | 1193 | 1 |
6.600 | 21366 | 10 |
6.610 | 569 | 1 |
6.630 | 15000 | 1 |
Last trade - 16.10pm 05/07/2024 (20 minute delay) ? |
Featured News
LYC (ASX) Chart |