well clearly the cost of living is biting across the board....

well clearly the cost of living is biting across the board. Adairs, baby bunting, accent as well as best and less have all given big negative updates.

In normal market conditions this would clearly have dropped significantly given those two trading updates. However it is not a guarantee it falls significantly after the sale even with the current bleak retail outlook.

1) with 68% of the shares now in the hands of Brett and Ray. By my reckoning you have 11.1% bell potter, 3.96% jp Morgan, 3.86% Rodney orrock, 3.73% citycorp and potentially another 3-5% worth of other big investors and staff members… this only leaves about 5-7% in the hands of retail if those above haven’t sold yet. I imagine more people will be shaken out after that trading update leaving only people who have a long term view holding. So there might not be much supply of stock for the selling once the deal has gone through. If you haven’t sold at 1.89 why would you sell lower just after?

2) on the demand side, blundy and Ray may be looking to acquire as much of the 3% in the market each 6 months to get close to the 90% amount. Other holders who have sold out may be looking to buy back in so there may be some demand.

therefore there could be tight supply and some demand. You certainly couldn’t guarantee a big drop after the deal goes through even tho in normal circumstances the price would have dropped significantly.