Techie, the negative side first: I have hardly ever had an increase in the sp after a t/h, just twice I was able to get out even. That way it must be baaaaaaad.
But: LPE has been and is constantly increasing its customer base, and the one I brought to them - Oceans Hervey Bay - is progressing well. That way there shouldn't be any bad but just great positive news to come.
The business model is working well and from talks to guys who know Origin and Ergon - QLD's biggest energy producer and retailer - these 2 big ones didn't take that model seriously so far, that's the reason why they sign up so many in a short time frame. Strata communities mean heaps of customers sign up by just talking to one Body Corporate - very efficient compared to canvas each customer individually. And they sign 5 - 10 years contracts -- almost a money printing machine.
What else could go wrong ?
1. LPE pulls out of the t/o - but that seems to be unlikely as LPE is the one that wants to get listed.
2. SXT won't raise the money to pay for the t/o, but unlikely that that will derail the deal as, again, LPE is using SXT as a backdoor entry to the ASX casino. They will wait and find a way. And they would have announced something like a delay or insufficient funding commitment or so.
3. Higher take over offer by a third party, but that would splash a lot of compensation money into SXT's account if SXT is kicked out. And as far I know SXT and LPE's manager are more than just business partners - they are mates.
All speculation but according to the wording:
" The trading halt is requested pending an announcement by the Company updating the market about
the activity and progress of Locality Planning Energy, its proposed acquisition. "
...LPE must have landed a big deal or more big ones. Look at the timing, 1pm QLD time. Someone signed a big deal at todays business lunch.
A bad news would have gone through insider channels already and the road show would have been cancelled, the sp would have gone sub 1c at least. Buying was stronger over the past few days - another indication the insiders loaded up sub 2c as much as they could and took on 2.1c as well. The BOTs did their best to manipulate the buy side by loading and withdrawing buy orders around the clock.
I have a positive gut feeling, let's hope this t/h turns my investment into a fortune and not into another disaster.
GLTA
