Theory one : Price will rocket - Actor = The Board 1) The company SP is grossly undervalued and the PPT offer should not be accepted. 2) The company value is substantially higher than the original offer. 3) Nil disclosure from the board about any erosion in fin outlook for the reporting period. 4) Board has $100m in available cash to fund the buyback (& divi)
Theory Two : Price will tank - Actor = Shorters 1) Huge amount of shorting in the market over the past month (up from $15m to $50m) relative to the past. 2) Falling SP reflecting poor market reaction to PPT offer. 3) Buyback takes effect only AFTER reporting (seen as insurance cushion for a potential SP fall).
The reckoning will be the next fin report in only a few weeks. And only one can win.
Tighten them straps. Its going to be a rocky ride, one way or t'other.
PDL Price at posting:
$5.09 Sentiment: Hold Disclosure: Held
