Ann: Change in substantial holding, page-5

First 5 Last

Share
Profile

Follow
BerserkWarrior

1,513 Posts.

1142

27/03/23

11:26

Post #: 66972995
Share

Originally posted by 2ic: ↑

Ody heard on the grapevine Min Res wasn't competing some while back and so they take a small loss and move on. Hedge funds operate with leverage (borrowed money is much more expensive than it use to be), and want to exit or reduce (hedge) their exposure in case the deal gets voted down. Odey is not a 1.5c arb fund... I suspect they came in for more than pennies but lucked out and so move onto higher reward plays.

Makes complete senses to me, especially iin light of the market correction and liquidity/credit risk hammering the market since Odey first took a position in ESS. The reasons they may want to get out some/all of ESS a couple of cents lower include; better opportunities become available elsewhere, risk management, debt/liquidity management depending on how their other business was performing, their lenders attitude to Odey leverage etc, etc. In this case, I think it's instructive to focus on the fact other arb funds and buyers are happy to take the 1.5-2c on offer against the risk the Scheme doesn't pass. Horses for courses... an arb fund is getting 4% over a couple months, which isn;t bad so long as the risk the TO fails is commensurately low, which buyers obviously believe.

For over 6 weeks the share price action has been telling us a no competing bid is coming. Between the falling lithium price and general market/economic bearishness, no surprise Odey decided the backdrop didn;t suit their style of holdout activism to greenmail Tianqi into lifting their bid 'or we'll vote the TO down' ...

Expand

Thanks for your thoughts on this.

ESS Price at posting: 48.5¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

Week 26 Wrap: Renewable gas fantasies; RBA July cut hope builds; copper's August peak?

BPH

Australia’s gas crisis is here – and dying coal plants aren’t helping

OCC

Orthocell sees 4% jump as Remplir used in first US surgery. But is that low?

PAR

Paradigm Biopharmaceuticals makes key acquisition moving into FY26

Listen: HotCopper Wire Podcast 015 – Yeah, we're thinking the IPO market is back

HotCopper Highlights Week 26: Droneshield 2.0; Trigg re-jig & Virgin

NATO’s 5% target: Why Almonty Industries’ mega mine and NASDAQ listing are a perfect fit for investors

SRL

Sunrise pops on top scandium hits NSW explorer will now use for 'multi-decade' plan

RMX

Red Mountain: Chip samples point to 'large orogenic antimony mineral system' at Oaky Creek

MVF

Monash IVF shares cater 25% – Disaster or deep-value play?

First 5 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

Ann: Change in substantial holding, page-5

Top Stories

Week 26 Wrap: Renewable gas fantasies; RBA July cut hope builds; copper's August peak?

Australia’s gas crisis is here – and dying coal plants aren’t helping

Orthocell sees 4% jump as Remplir used in first US surgery. But is that low?

Paradigm Biopharmaceuticals makes key acquisition moving into FY26

Listen: HotCopper Wire Podcast 015 – Yeah, we're thinking the IPO market is back

HotCopper Highlights Week 26: Droneshield 2.0; Trigg re-jig & Virgin

NATO’s 5% target: Why Almonty Industries’ mega mine and NASDAQ listing are a perfect fit for investors

Sunrise pops on top scandium hits NSW explorer will now use for 'multi-decade' plan

Red Mountain: Chip samples point to 'large orogenic antimony mineral system' at Oaky Creek

Monash IVF shares cater 25% – Disaster or deep-value play?

Featured News