That’s true, which is also why I’m very much long TLX as well. It is an excellent company that I don’t believe the market is properly valuing either. They are ahead of CU6 a bit, and of course have been engaging in the aggressive M&A strategy, which is why I suggest something a bit closer perhaps to half its market cap by the time we reach the readouts. It’s also worth remembering that CU6 is quite likely to be taken over, and the synergy benefits therefore should make this company a lot more valuable to a potential bidder than it might be if it were to remain listed (as has been the case for TLX). This could result in an acceleration in a move towards a valuation more akin to a company closer to the stage where TLX is at.
We will have to see though! I think there’s still a fair bit more upside which is why I have been topping up a bit at these prices.
CU6 Price at posting:
$6.22 Sentiment: Buy Disclosure: Held
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