This is my main concern. We have a CEO with experience in being able to make a TO transaction, and there isnt a strong lot of control over that in the scheme of things if someone was to make an enticing offer, even if it undervalued us.
For instance, say we do well in the next 6 months and we re-rate to somewhere between $1 and $1.50. Now we were in that range before with a much riskier outlook. So in my opinion, thats a fair re-rate although would still be undervalued based on future potentials. Just my opinion of course, and quite a bit of good weather in the industry would be needed for that to be an undervalue situation.
Now someone sees it sit around that value for a few weeks, and springs an offer on at a small premium.. a large number of shareholders looking at 60 to 100% gains. Its a decent offer. Not at where I would be happy but the majority..potentially. That would be a hard offer to stop.
I was in PTB. A great business with alot of cashflow and paying dividends while actually growing at a solid pace. Locked in maintenance contracts and international parts supply authorised. We finally started moving toward our true value on market and I seen a good exit point about 2 to 3 years ahead after some growth moves being realised. Then bang...a premium offer came through which although good, was maybe 75% of where I saw our value getting to. It was accepted and went through.
I hope it doesnt happen here.
HZR Price at posting:
49.0¢ Sentiment: Hold Disclosure: Held
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