SIR IGO

Speculation mounts re Sirius' Independence, page-135

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24/07/15

15:04

Post #: 15689441
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Originally posted by quarbing ↑

Perhaps another way to explain it is this -SIR sp at 6 May was $2.85. The following day, speculation started in the media that a TO might happen. In the following month just prior to the announcement of the takeover, the SP rose to $3.90 - clearly fuelled by this speculation.

In the absence of the takeover (and associated pre announcement speculation), we could assume that the SIR sp would have followed other industry peers.

In this regard, the WSA share price on 6 May was around $3.78. It is currently trading at $3.06, a drop of around 19%. This is despite a pretty solid quarterly report.

So in the absence of the take-over, it is likely (but certainly not a given) that the SIR sp would also have dropped from its 6 May price of $2.85 by around the same % and be at $2.28.

But we are currently trading at around $3.10.

And this does not factor into the equation that SIR shareholders will most likely receive at least 2 (possibly 3) dividend payments from the IGO merged entity that they would not have received from SIR alone over the next few years.

There are a number of assumptions built into this but to state that value has been destroyed by this takeover is somewhat simplistic and short-term.

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IGO Price at posting: $3.91 Sentiment: None Disclosure: Not Held

SIR Price at posting: $3.10 Sentiment: Hold Disclosure: Held
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0 Great analysis

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Speculation mounts re Sirius' Independence, page-135

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