The Substantial Shareholder Notice lodged in August by the T Rowe Price organisation showed that they'd not been prepared to buy shares at more than 21.5c as they quite rapidly built up a holding this year. Since then though, a party or parties has certainly been prepared to do so.
Daily Volumes seem to have been above average of late and a fair amount of stock in RED was crossed at 26-26.5c last week (with even a handful of trades being done at 27c). If some shareholders are prepared to accept lower than these prices, it'd make sense for a buyer to hold back a little and see just how much stock they can soak up at lower prices.
This activity may simply be the result of a patient accumulator taking a view that RED's recent problems are behind it and that the time is ripe to build a decent holding in what appears to be an under-valued stock with quite bright prospects.
Alternatively, it could also be a potential predator building a base from which to launch a bid.
I noted a comment within a piece about RED in Friday's The Australian that "Market sources believe Red 5's shareholders would be supportive of a buyout of the company ... ". Possibly kite-flying or possibly a relatively informed insight.
One aspect though is that if the recent buying is leading to an offer being made, those doing the buying are outlaying a bit of cash by buying on market. As I said, it may simply be the acquisition of a stake upon which to launch a bid. But it could also indicate that if there's to be a bid, it could quite possibly be a cash bid.
Given the rumours about a particular interested party, I'd think a cash bid would have more appeal to RED shareholders than one simply offering them over-priced paper in the bidding entity.
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Last
40.0¢ |
Change
0.005(1.27%) |
Mkt cap ! $2.720B |
Open | High | Low | Value | Volume |
40.0¢ | 40.5¢ | 39.5¢ | $11.08M | 27.71M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
19 | 1144031 | 39.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
40.5¢ | 1551283 | 17 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
16 | 819457 | 0.395 |
24 | 1429748 | 0.390 |
11 | 698263 | 0.385 |
14 | 497170 | 0.380 |
8 | 268469 | 0.375 |
Price($) | Vol. | No. |
---|---|---|
0.405 | 424034 | 10 |
0.410 | 2144037 | 34 |
0.415 | 1188564 | 13 |
0.420 | 416929 | 16 |
0.425 | 367296 | 10 |
Last trade - 16.10pm 09/07/2024 (20 minute delay) ? |
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RED (ASX) Chart |