I have no sentiment, because it would be difficult for me to argue a negative sentiment when i hold a position. Regarding the bullet points, it didn't take a long time because I make sure i read the last annual report, at a minimum, before i invest in anything.
Now, my original post was a response to bendigo's where he questioned whether sigma needs to do a cap raise. I for one would rather the company's destiny be in its own hands rather than on a whim of a potential suitor.
Yes, Aspen had a good look in and yes they did not walk away, but do you really think Sigma would show them anything that would cause them to definitively walk away anyway?
I see your point about Gunns, but they struggled on the back of poor woodchip sales with Japanese customers turning back shipments due to poor demand from the GFC. Gunns is a cyclical stock. Sigma on the other hand is meant to be defensive, but its poor result was a result of 'intense competition'. Now will that 'intense competition' abate as quickly as global economic conditions?
One needs to only look at NUF to see the potential for a share price to dive after interest is waned. NUF is one of the few contemporary scenarios where the revised bid was less than the initial bid.
SIP Price at posting:
42.0¢ Sentiment: None Disclosure: Held
