I will be very interested to see how the market receives this announcement. I'm a holder of 9sp and can draw a number of parallels with this deal to 9sp's recent annoucement of a 5 year deal with VISA.
- Both present enormous upside potential for both businesses - Both were highly telegraphed to the market - Both provided no specific details as to impact upon future revenues
In the case of 9sp, a pretty signifcant gap opened up pre-trade (circa 70% from memory) as initial fervour set in. The stock opened at around 6.1c and closed the day back down at around 3.5c. Sell-side pressure was intense throughout the day. Ultimately the market seemed to be let down by the lack of details around future revenues.
I see a lot of similarity with the OSP deal with GE. Theres a small gap starting to open up but i would caution anyone looking to jump in on open and watch how it trades throughout the day.
Dont get me wrong - im not down-ramping and think both businesses have signficant potential - but would hate to see people jump in on this announcement and get caught.
GLTA
OSP Price at posting:
4.5¢ Sentiment: None Disclosure: Not Held
