Seems this got gapped up too high on open and now the gap is being forcibly closed. All the buyers rushed in and sellers pulled their asks. Then sellers moved in gradually (price-skimming).
All those who bought on open have had to cop a loss or grunt it and hold on.
Would have been better if it had gone in reverse i.e. open at 2.4c and climb to 2.9c/3c where I think it should be after this announcement.
DEvous,
This is not a takeover offer. It is an offer to contribute equity to the company. Taifeng will become a cornerstone investor which with a blocking stake which will mean that it will be very difficult for another party to take Padbury over. My experience with cornerstone investors in miners is generally positive so I am happy for the investment to proceed. It does somewhat cap the long-term valuation of the company, but hey if you think 3.3c is undervalued, you should be gobbling up everything under 3c.
Market also seems to be pricing in a risk that the offer could be rejected by shareholders but just 2 tenths of a cent up does not do this announcement justice.
PDY Price at posting:
2.5¢ Sentiment: Hold Disclosure: Held
