It would seem to me that there are low expectations of the merger going through! Otherwise, would you buy MMS at $15.03 when you could buy ECX at $2.21?
Consider the following:
$10,000 buys 4524 ECX shares (1000/2.21). For those shares if the merger goes through in its present form, you would get $2081 (4524*0.46) cash plus 638 MMS shares worth $9589 (638*15.03) for a combined value of $11,670 which represents a 16% premium over buying $10,000 worth of MMS shares (all calculations approximate, ignore rounding errors and transaction costs.
[NEEDLESS TO SAY, DO YOU OWN RESEARCH AS MY LOGIC AND/OR MATHS MIGHT BE COMPLETELY WRONG. Even if the logic and maths are correct, they hold for current relative prices only and will change as the relative prices change.]
I bought some ECX a couple of weeks ago as a hedge against part of my MMS holding (in case there was a revised higher offer from someone else that drove up the price of ECX or should MMS be forced to make a higher bid). I am underwater on that trade at the moment but no worse than if I had bought MMS shares directly. (However, if the merger had gone ahead today at the relative closing prices, I would be well ahead on the trade)
I was considering selling some MMS to buy some ECX but for me their “guidance” raised red flags for MMS as well as ECX and the proposed merger. I must admit I am tempted to sell out of both ECX and MMS which both seem to be caught up in poor industry dynamics at the moment.
- Forums
- ASX - By Stock
- FPR
- does ECX have to merge or is it to be decided by SH?
does ECX have to merge or is it to be decided by SH?, page-8
-
- There are more pages in this discussion • 21 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 FPR (ASX) to my watchlist
(20min delay)
|
|||||
Last
$3.03 |
Change
0.020(0.66%) |
Mkt cap ! $720.3M |
Open | High | Low | Value | Volume |
$2.98 | $3.03 | $2.98 | $32.98K | 10.93K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
12 | 1571 | $3.02 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$3.03 | 2893 | 7 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
5 | 622 | 3.010 |
14 | 1782 | 3.000 |
10 | 4017 | 2.990 |
9 | 3283 | 2.980 |
9 | 8366 | 2.970 |
Price($) | Vol. | No. |
---|---|---|
3.020 | 4920 | 7 |
3.030 | 1114 | 6 |
3.040 | 11245 | 8 |
3.050 | 1780 | 6 |
3.060 | 9756 | 7 |
Last trade - 10.10am 04/10/2024 (20 minute delay) ? |
Featured News
FPR (ASX) Chart |