alternatively it traded at 32c because the market didn't believe the deal would go thru. If the market did believe it would go thru wouldn't it have traded much closer to the 50's.
That gap between 32c and 57c is IMHO reflective of the markets view and the risk associated with a failed deal. You have to base your view on all the circumstances. Its not necessarily price reflective of the asset. (Every stock is considerably down across the board)
As for the share placement at 39.5, thats business, its a tough market. At 39.5c those who involved in the capital raising get an appropriate reward for their risk. (The risk of Hanlong deal falling over, based on many factors, including Hanlongs reputation for take overs)
Now we have 'rumour' about the hedge funds views on the alleged reduced offer. Well they are in it to make money like all of us. I consider the hedge fund views on SDL 'fair price' as a good guide. They have access to a lot more information and research than some punter on hotcopper and I feel make a more informed decision.
SDL Price at posting:
33.5¢ Sentiment: None Disclosure: Held
