I would say the conditions for a take out are improving by the day. Here’s JPM’s view highlighting sector consolidation and also quantifying the customer acquisition cost of $2,200 vs $1000 that LPE illustrates in their slides. That’s 2x difference if you didn’t notice!
Even if you try to account for QLD concentration and less scale that price is huge and significantly more than LPE use in their numbers - if a bid did come for LPE it would be significantly higher than the present SP. Four bidding parties also highlight the level of latent underlying demand.
Personally a takeout would be nice but very hard to predict or time. I’m here for the operating leverage story. GLTAH
Cheap buying at these levels IMO
LPE Price at posting:
17.0¢ Sentiment: None Disclosure: Held
