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I didn't expect a takeover, but i knew there was value in this...

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stihlalive

138 Posts.

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23/06/22

11:42

Post #: 62157573
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Originally posted by madamswer: ↑

"why isn't the stock at $1 now?"

Two reasons:

1.) Transaction completion risk

Albeit low due to board recommendation and uncomplicated acquisition mechanism... but still not zero risk of the deal not proceeding.

2.) Time value of money

Some investors might think - with good reason given the following the market's fall in recent months - that they would rather forego the remaining 10% upside and instead recycle the capital into more attractive investment alternatives.

I know that's what I will do on 1 July if the stock price is still at current levels.

"Will it trade at $1 anytime soon?"

No. It will rise gradually to a $1 between now and October.

And - given this is a knockout bid par excellence - it is highly unlikely an interloper will come over the top

.

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I didn't expect a takeover, but i knew there was value in this stock. Well done all.

PYG Price at posting: 91.5¢ Sentiment: Hold Disclosure: Held
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