The record for small companies making large acquisitions without getting a serious dose of indigestion is not all that good from the few I have seen. So from that perspective, I am not holding for now, but will want to wait until I can at least see the mid-year balance sheet and accounts to form a view. They are not so undervalued (especially relative to historical) as to be compelling once integration risk is considered.
I think there will be time to get in with lower risk if they look okay. But then the market is being fairly hasty at the moment, moving early on value opportunities and threats, so I may miss out.
CKL Price at posting:
71.0¢ Sentiment: None Disclosure: Not Held
